Merger And Reorganization Performance Commitment Case Study Of Ourpalm

As market economy keeps growing fast recently,we have more frequent mergers and acquisitions in capital market.M&A is not only the key way of expanding enterprise's business scale,dominating the market,but also the primary method for adjusting industrial structure and increasing resource utilization.During M&A,only estimating and making decision based on fair and square standard,the interest of both sides can be promised,and the process will be influent,as a result,the business will succeed.To keep M&A's standard and price fair,reduce enterprises'risk afterwards,and ensure their steady development,both sides often make use of gambling agreement to valuate and regulate M&A's standard.Nowadays,with game companies' quick outspreading,their business scale keeps exploding,in this case,each enterprise tries to improve themselves,finally,M&A becomes much more frequent than before,LeHuiTianXia,TianzhouCulture,SanqiHuyu,and Ourpalm have already released their M&A plans.Why are all kinds of large game manufacturers interested in M&A with gambling agreement and keep trying it?What dangerous factors are hidden behind these crazy business?Will M&A really increase enterprises' productivity?To discuss about these problems,this article will talk about Ourpalm which has purchased two game companies,dig into the actual cause and latent risk during M&A.This thesis firstly uses the literature analysis method to describe the connotation of performance commitment,the subject of performance commitment,and the compensation method of performance commitment.It also summarizes the research results of domestic and foreign scholars.In the case analysis section,using event analysis.At first,the article recalls the definition and implementation of gambling agreement,and then introduces research results from domestic and international researchers,with information asymmetry,agency,real options and game theories.While analyzing cases,it uses event analysis method.First,the paper shows the research on the essential reason of M&A,especially from the aspect of scaling up business,increasing profit and modulating strategy.Second,it discusses about payment methods,and transaction ways in which same stock has different values,and analyzed from research,encouragement towards partners,management shareholders in particular is considered as a good method.Third,the article tells about the accomplishment of gambling agreement,a series of problems and unfinished work of Ourpalm after M&A,to figure out the essential reason of problems.In this part,the article does some research about decreasing honor,resource integration,losing key managing power and changing performance's compensation.Only if making the true source of problems clear,we can get the right solution.Finally,the page gives some suggestions about enterprises' future development,including choosing reasonable partners,paying more attention on resource integration after M&A,and adjust management of performance and compensation based on business features,in order to help people use multiple plans to lower risk of Grambling agreement.