Research On The Risk Of Performance Commitment In Yinjiang Merger And Acquisition Of Yatai Anxun

In recent years,with the trend of merger and acquisition reorganization becoming more and more obvious,the use of performance commitment has become more and more extensive,but the risk of performance commitment has gradually increased.For mergers and acquisitions,the original purpose of signing performance commitment is to reduce the risk of mergers and acquisitions,but since the implementation of perfonnance commitment,its own shortcomings have been exposed one after another,which further leads to increased risk of mergers and acquisitions activities,and the failure of performance commitment also directly leads to the failure of mergers and acquisitions,thus putting forward the risk management problem of performance commitment.In the case studied in this paper,since 2010,Yinjiang Co.,Ltd.has expanded rapidly through mergers and acquisitions,strengthened the core competitiveness of enterprises,and improved business performance.At the same time,as the core of M&A and reorganization,Yinjiang Co.,Ltd.has signed performance commitment agreements with the acquired parties in many M&As in recent years.However,it is worth noting that the performance commitment is not fulfilled satisfactorily,and the failure of performance commitment has occurred repeatedly,even to the extent that both sides of the merger and acquisition deal are in court,which directly affects the overall performance and stock price fluctuation of Yinjiang Co.,Ltd.This paper elaborates the risk management process of performance commitment in detail.Firstly,it combs the M&A events and identifies the influencing factors of performance commitment risk based on relevant literature research and theoretical support.Because performance commitment is based on M&A activities,it is inevitable to consider the relevant factors brought by the M&A process,and summarizes the identified performance by classification.The sources of commitment risk mainly include economic environment,performance commitment process management,quality of merger and acquisition stakeholders,merger and acquisition process management and information management.Then,through HHM-AHP model,the risk of signing performance commitment of Yinjiang Co.,Ltd.is systematically analyzed,and its risk points are summarized.The main risks include inherent risk of performance commitment,economic and environmental risk,information management risk and moral risk.The inherent risk of performance commitment is mainly analyzed from due diligence risk,performance goal setting risk and compensation risk.Finally,on the basis of theoretical analysis,relevant suggestions on risk control of performance commitment are put forward.We hope to help listed companies better manage performance commitment risk,whether for inherent risk of performance commitment or related risk of performance commitment in M&A activities,in order to improve the credibility and practicability of performance commitment,so as to reduce the risk of performance commitment.The performance commitment risk management proposed by the case study in this paper is from the perspective of mergers and acquisitions.It can not only make listed companies further understand the performance commitment risk from their own point of view,but also provide case reference and risk control suggestions for improving the efficiency of performance commitment risk management,which has certain practical value.