Study On The Risk Of Horizontal M&A Of Goodwill In Game Enterprises

Since 2013,by the encouragement of favorable policies issued by the state,industrial transformation and the popularity of smart phones,the price of M&A in the game industry has also risen with the promotion of the two level market valuation.In addition to the prosperity of the M&A market,the risk of goodwill impairment caused by the high premium is also associated with the acquisition of high premium.This thesis makes an analysis from the case of DURPALM Co.,Ltd.The analysis is carried out in three aspects,including the factors affecting the formation of huge mergers and acquisitions in M&A cases,the source of impairment risk after merger and acquisition,and the possible economic consequences of reputation reduction risk.The study finds that the valuation of the underlying enterprise is the basis for the formation of M&A.At the same time,the use of performance commitment will also make an influence to the price.In terms of reputation reduction,the quality of corporate governance and the devaluation risk of goodwill will be deeply influenced by the management situation after the merger and acquisition,the manipulating motivation of the accounting information and the performance commitment and the subsequent treatment.In the case of DURPALM Co.,Ltd,the most intuitive economic consequence of the risk of goodwill is to drag on the performance of the current period,and cause a negative reaction in stock market.Based on the results of this case study,the author draws inspiration from three perspectives.Firstly,from the point of view of the enterprise,the avoidance of the risk of goodwill can not only start from the hard-work in the pre-purchase link,but also from paying attention to the mutual absorption between the business and the resources after the merger.Then,the tool of using the performance commitment as a risk management tool should not only be used in the formulation of compensation clauses.Secondly,the value evaluation value of the absolute value can be obtained through the income method.The market method is used to obtain a more reasonable valuation interval,to enhance the objectivity and rationality,and to reduce the reputation risk from the source.Thirdly,small investors should not only rely on the protection provided by policies and regulations,but also improve their discriminating ability.