Study On The Prevention Of Goodwill Impairment Risk In Qtone Education Mergers And Acquisitions

Enterprises can realize transformation,upgrading and industrial integration through mergers and acquisitions,so mergers and acquisitions is an important way of enterprise development.Driven by the support of national policies and the upgrading of residents' cultural consumption structure,the media industry,as a new cultural industry in China,has witnessed rapid development in M&A,and the scale of goodwill has been expanding.When the wave of mergers and acquisitions fades,the negative news that the performance has greatly changed due to the preparation of goodwill impairment is constantly reported,and the backlog of goodwill impairment risk is further exposed.This paper uses case study method to analyze the influencing factors of impairment of Acquisition goodwill in Qtone Education,and then puts forward the preventive measures of impairment risk of Acquisition goodwill.Firstly,this paper summarizes the Acquisition goodwill and the impairment of goodwill of Listed Companies in the media industry in China.Then,through the combing of Qtone Education mergers and acquisitions,summarizes the situation of Qtone Education Acquisition goodwill,goodwill impairment.Then,combined with the assets evaluation report of the target before merger and acquisition and the operating performance of Qtone Education after merger and acquisition,it is concluded that the influencing factors of Acquisition goodwill impairment mainly concentrate on three aspects:(1)the value evaluation of the enterprise is too high;(2)the synergy effect is difficult to give full play to;(3)the performance of the target of merger and acquisition is not as expected.Then combined with the changes of Qtone Education stock price and the reduction of major shareholders,it is concluded that the substantial factors affecting the impairment of Qtone Education Acquisition goodwilll are: blindly pursuing market hot spots at the beginning of Qtone Education M&A,failing to make rational judgement and earnest evaluation on the synergy between the target of M&A and the company's strategic development,and the large shareholders and senior managers stimulate the stock price through high valuation and high premium M&A profits.After the high stock price arbitrage leaves the market,it is more careless to integrate the business operation of the company and the target of merger and acquisition,which makes the synergy effect difficult to play,and the target of merger and acquisition is not as expected,resulting in the exposure of the huge risk of impairment of goodwill.Finally,in view of the influencing factors of goodwill impairment,combined with the current situation of the media industry and the trend of economic development in China,this paper puts forward some preventive measures for the risk of goodwill impairment from the perspective of Qtone education itself and market regulators:(1)For companies,in the financial aspect,before mergers and acquisitions,they should make a detailed assessment of the target of mergers and acquisitions and the development of the industry in which they are located,make reasonable valuation,and prevent risks from the root causes of the impairment of goodwill;in the business aspect,they should innovate the target products and give full play to the synergy effect;in the internal control aspect,they should actively disclose information,give full play to the supervisory role of the board of directors,and establish the responsibility Mechanisms;(2)For market regulators,in terms of accounting standards,we should formulate goodwill accounting standards suitable for China's economic and enterprise development,and adjust them according to actual changes;in terms of supervision,we should improve the level of corporate information disclosure through standardization,guide professionals to play a role of professional restraint,and promote the healthy development of the market;(3)For small and medium-sized investors,we should advocate value investment and pay attention to the risk warning of goodwill impairment.