Research On Financial Performance And Influencing Factors Of Mergers And Acquisitions Of Light Assets Companies

With the acceleration of the reform of the economic system in our country,some traditional industries have experienced such unfavorable conditions as the slowdown of development and intensified competition in the industry.As a result,there is a new wave of mergers and acquisitions in our country.In many M&A activities,M&A of light-asset companies is generally welcomed by capital markets.Light-asset companies have the characteristics of high economic value and less occupied capital.M&A of light asset not only inherits some inherent problems of M&A activities,but also has certain particularity.The Merger of light-asset companies has a significant impact on the financial performance.In order to explain the related gains and risks of the M&A of light asset,reveal the impact of mergers and acquisitions on the performance of listed companies' financial performance and determine the impact of related factors on financial performance in the change of business performance,this paper uses a series of research methods such as case analysis,comparative analysis and literature research to analyze and study the case of Rapoo technology company mergers Lehui World company,from the special to the general,illustrates the common problems in M&A of light asset.The high profitability of light-asset companies will improve the overall business performance of the enterprises.However,due to the valuations are relatively high for light-asset companies,the payment of consideration may lead to a decline in corporate solvency,in the meantime,the confirmed goodwill is relatively high.When goodwill impairment occurs,it increases the risk of fluctuation of the enterprise's overall operating performance.In addition,this article found problems in the disclosure of information related to mergers and acquisitions of listed companies when studying the factors affecting M&A financial performance.Combined with the case analysis,this article put forward corresponding suggestions on M&A activities between listed companies and light asset companies.At present,the domestic and foreign scholars mostly focus on the research of asset-light companies in the aspects of enterprise value assessment,corporate profit model,and the research contains a lot of theoretical research.This paper focuses on the M&A of light-asset companies,through the study of the actual case,it reveals the particularity of the light-asset company and its influence on the financial performance of the merger and acquisition party.In addition,this paper studies the whole process of M&A,analyzes the factors influencing the performance of the business in a comprehensive way,and it can reflect the benefits and risks of the light-asset M&A activities with a more complete perspective.