Research On Performance Compensation Risk Control Of Sinyard's Merger And Acquisition Of Kejiang

With the unprecedented development of economic globalization and information technology,in order to expand the scale of production and operation of enterprises,more and more enterprises in China hope to achieve resource integration through mergers and acquisitions,so as to achieve the purpose of improving core competitiveness.However,the high return brought by M&A is inseparable from its own high-risk characteristics.In order to reduce financial risks and ensure the smooth progress of M&A effectively,more and more enterprises choose performance commitment and compensation as tools to control financial risks.This paper takes performance compensation as the orientation,and takes the case of Sunyard's M&A of Kejiang as the breakthrough point.In the process of M&A and reorganization,this paper discusses how to conclude performance compensation agreement,the core clauses of performance compensation agreement and how to set up the amount of compensation,and achieve the expected results.Firstly,this paper elaborates performance commitment and compensation from the theoretical basis and application principle,which lays a foundation for analyzing the case of Sunyard which uses performance compensation to control risk.Secondly,this paper detailedly introduces the specific process of information the content of performance compensation agreement,trigger mechanism,compensation methods,etc.It classifies the potential risks of performance compensation,and concludes the disadvantage of incomplete performance commitment and compensation to the financial situation of mergers and acquisitions.Thirdly,this paper divides the fiscal year into pre-M&A(2012—2014)and post-M&A(2015—2017),collects financial information from the annual reports disclosed by listed companies,the website of the Securities Regulatory Commission,the Wind database and other channels,analyses the differences of financial performance before and after the M&A of Sunyard,and analyses the role of performance compensation tools in it;and the information of scientific craftsmen has completed the year of 2015—2016.The promised profit is not completed in 2017.Next,this paper summarizes the risk identification factors of performance compensation,which are divided into common risk identification and specific risk identification of performance compensation.Finally,this paper puts forward specific ways and methods to control the risk of performance compensation,and puts forward improved countermeasures for mergers and acquisitions,and envisages the application prospects of performance compensation,which also has reference significance for the mergers and acquisitions of Listed Companies in China.