Research On The Application And Effect For VAM In Conglomerate M&A

External M&A is a prudent decision for companies seeking survival and development and achieving their own strategic goals.Mergers and acquisitions may bring new profit growth points to enterprises and create huge benefits for shareholders,but high yields are accompanied by high risks.Carefully,it will lead companies to pay a huge price,cause irreparable huge economic losses,and even lead to a complete collapse of the enterprise.Therefore,M&A transactions have always been academic research hotspots.In the past few years,value adjustment mechanism has emerged as a new thing in a major M&A restructuring.Has value adjustment mechanism as expected as it has promised? What impact does the introduction of a gambling agreement have on M&A transactions? Introduce incentives for Value adjustment mechanism and the economic consequences? In the area of mixed mergers and acquisitions where information asymmetry is more serious,does it still play a role in Value adjustment mechanism?This article uses Leo's series of cross-industry mergers and acquisitions as the material and uses case studies to understand value adjustment mechanism.Leo has conducted a series of mergers and acquisitions since 2014,through a series of high-quality digital marketing companies.The acquisition of Leo Group began in the digital marketing industry.Based on the original traditional manufacturing industry,new markets are being opened in such emerging areas as digital marketing.Leo Group series of mixed mergers and acquisitions cases have very different gambling success cases and related terms and conditions of the signed gambling agreement.Therefore,by analyzing this case,we can fully and thoroughly study the motivation and impact of value adjustment mechanism on the introduction of mixed mergers and acquisitions.And the corresponding economic consequences.This thesis firstly clarifies the purpose and significance of the research,reviews the domestic and foreign literatures related to gambling agreement,sorts out the theoretical achievements recognized by the mainstream,and combines the research content and research methods of this paper,pointing out the innovation of this article.Then introduce the content composition of value adjustment mechanism,have a certain understanding of value adjustment mechanism,analysis of the motivation for the introduction ofmixed mergers and acquisitions gambling agreement,and summarize the related theoretical basis for the use of gambling agreement in order to conduct case studies.Selecting Leo Group's series of mixed mergers and acquisitions,in-depth study of value adjustment mechanism performance commitment,performance compensation and other mechanisms designed to explore its impact.Finally,through the acquisition and post-merger performance of subsidiaries and headquarters,the paper analyzes and analyzes the advantages and benefits of Value adjustment mechanism in mixed mergers and acquisitions.Put forward relevant suggestions and guide practical applications.Research shows that Value adjustment mechanism play an important role in mergers and acquisitions.First of all,value adjustment mechanism can reduce the level of information asymmetry in the mergers and acquisitions in mergers and acquisitions,improve the efficiency of mergers and acquisitions,increase the success rate of mergers and acquisitions;stimulate the enthusiasm of the original shareholders and management,reduce the cost of agency;promote mergers and acquisitions to actively participate in the integration and achieve a win-win situation.However,value adjustment mechanism did not completely eliminate the risks in mergers and acquisitions,and the acquirer still faced a series of risks,such as impairment of goodwill after the performance promises failed,and the merger and acquisition parties needed to respond through scientific and reasonable methods.Although the application of value adjustment mechanism in the major asset restructuring between enterprises in our country has been quite common,but the relevant research has only stayed in its cognitive level.This case study further proves the importance of value adjustment mechanism to major asset restructurings,especially mixed mergers and acquisitions,analyzes the value of value adjustment mechanism,and points out the deficiencies and shortcomings of value adjustment mechanism in real economic life.The design of economic activities,especially the design of mixed mergers and acquisitions contracts,provides useful thinking.To provide certain reference and enlightenment for the use of value adjustment mechanism.