The Research On High Evaluation Issue Of M&A Between ENLIGHT And New CLASSICS

Cultural and creative industry has a rapid rise in recent years,in order to keep up with the development tide and quickly occupy the market share,the companies in this industry all took their effort to pile into the capital market,and raised the wave of "M&A boom".At the same time the problem such as high valuation,high premium and high performance pledge followed.As a Cultural well-known enterprise in creativity industry,Beijing Enlight Media Co.,ltd.purchased the equity of NEW CLASSICS Media Co.,Ltd.In year 2013,the high valuations of the underlying equity in this case raised a huge response in the capital market.Therefore,this article selects the case,and analyses the high valuation problem exposed in the case.Through calculation and analysis,the article gives pertinence suggestion for the Enlight Media,and helps the company to make more correct decisions of mergers and acquisitions in the future.As a result,the company can really develop its enterprise value through mergers and acquisitions in the future,and provide the reference value for the problems of the high valuations in the media industry capital market.In order to achieve these goals,this paper use a large amount of research methods,for example the in early stage of writing,a large number of literature and statistics methods were used,and this paper also use the combining of specific cases and theory method in the following writing process.In the subsequent analysis,qualitative and quantitative methods are also used,which not only introduce relevant theoretical knowledge,but also involve specific calculation process.In addition,there are various other research methods such as comparative analysis,data analysis and formula valuation.As a special case study,this article focuses on the specific case.Firstly,it proposes the high valuation phenomenon in this case through valuation calculation.Then,it analyzes the specific problems existed and finds out the causes.Finally,based on the above analysis,the article puts forward some suggestions for Enlight Media.Through a series of calculation and analysis,this paper finds that this transaction not only has a high risk of high valuation,but also has some disclosure defect and management decision error problem.This paper argues that the light media should bemore careful in the future merger and acquisition decision: improve the valuation techniques,select the appropriate valuation methods,fully consider the market uncertainty,and reduce the subjective consciousness in the process of valuation effects.In addition,from the corporate governance level as a whole,it should strengthen enterprise internal control,so as to make correct management decisions.On this basis,the external functional departments should also increase the supervision intensity as the auxiliary,so as to create the healthy market environment of the merger and acquisition market in the cultural and creative industry.