Research On The Motivation And Financial Risks Of Great Wall International Animation Games M&A

Currently,as the community economy of China has been developed rapidly,the per capita disposable income of people improved steadily,people's demand for the highquality of film and entertainment works Greatly increased.The film and entertainment industry has entered a stage of rapid development.This phenomenon has attracted amount of capital income,and a large number of mergers and acquisitions M&A have occurred,especially the traditional industry enterprises has been opened the new market through M&A a film and entertainment enterprises.But the characteristics of the film and entertainment industry such as lighter assets,rapid changes in policies,high turnover rate of employees determine that the risks of M&A are different from traditional industry.Therefore,it is of great theoretical and practical significance for the rapid increase of mergers and acquisitions activities in view of the motivation and financial risk of M&A in the film and entertainment industry.This paper selects the Great Wall International Animation Games(GWACG)M&A with the other seven Comic companies for the study case,using literature research,case analysis and financial comparative analysis to explore and study the M&A of film and entertainment industry in recent years,which can provide specific measures referenced for the financial risk of M&A activities in related industries in China.This article researched and analyzed the motivation of the GWACG M&A with the other seven Comic companies,divided the M&A activities into three phases,and analysis the valuation risk in the pre-M&A,financing payment risks in the mid-M&A,and financial risk in the post-M&A through the financial data.This paper also compares the results of financial data analysis with the Meisheng Culture Company and the average level financial indicators of the animation industry to explore the risks caused by the M&A of the GWACG.Through the analysis of the risk and the financial indicators,it is concluded that there are greater valuation risk in GWACG in the pre-M&A,financing and payment risks in the mid-M&A,business performance and goodwill devaluation risks in the post-M&A.Based on the comprehensive analysis of the GWACG M&A,this paper finally puts forward preventive measures for risk of M&A during the different stages.To minimize the risk of M&A,we should make clear the motivation of M&A,investigate well and improve the valuation system of the target enterprise during the pre-M&A,do a good job of prevention for financing and payment risk during the mid-M&A,strengthen business,cultural and financial integration during the post-M&A.