Research On The Risk Control Of Gambling In The Mergers And Acquisitions Of Corporate Mergers And Acquisitions

The pattern of world economic integration has basically taken shape.M any companies around the world have participated in the market competition.Enterprises are facing a more complex and fierce competitive environment i n their operations,which have put higher requirements on their capital,man agement and technology.Mergers and acquisitions of enterprises can achieve a reasonable integration of resources in a short period of time,help enterp rises expand their business scale,enhance the ability of mergers and acquisi tions to resist risks in the market,and promote enterprises to have higher market competitiveness.In the process of enterprise merger and acquisition,due to the great difference between the value evaluation results of the main partner and the target enterprise,the merged enterprise will introduce the p erformance gambling agreement from the perspective of capital introduction and the main partner enterprise will introduce the performance gambling agr eement from the perspective of long-term interests.Gambling agreement not only gives priority to the target enterprise and brings the enterprise the expected income,but also introduces external forc es to help the merged enterprise solve the short-term capital demand becaus e of the given performance commitment index during the gambling period.Gambling agreement plays an important role in the success of enterprise me rger and acquisition.However,the application of performance-based gamblin g agreements will also lead to potential risks for enterprises.A large numbe r of enterprises fail to fulfill their commitments in accordance with the prov isions of the agreements,which will seriously damage the interests of the m ain parties.Therefore,it is of great practical significance to study the risk c ontrol of the main parties' performance-based gambling in mergers and acqu isitions.The paper is divided into six parts: The first chapter is the introduction,which mainly introduces the research background and significance,research methods,ideas and contributions.The second chapter is a literature review,summarizing domestic and foreign research fields and related research resul ts on mergers and acquisitions,gambling agreements and performance gambl ing.The third chapter is the concept definition and theoretical analysis,the theoretical analysis of the gambling agreement and the risks faced by perfor mance gambling in mergers and acquisitions.This paper mainly introduces t he concept and components of the performance gambling agreement,and an alyzes the possible risks of performance gambling by introducing informatio n asymmetry theory,game theory and other theories.The fourth chapter is a case study,combining with the analysis of the actual situation of mergers and acquisitions in xinhua medical,to discuss the risks and threats that the main parties may face in the gambling process.The fifth chapter is the ris k control plan,aiming at the existing related risks,it puts forward targeted suggestions and measures from the aspects of pre-merger,in-merger and pos t-merger.The sixth chapter is the research conclusion and prospect,which r efers to the summary of this research.This article not only provides practical and effective suggestions on ho w to control risks in performance gambling in xinhua medical,but also pro vides a reference framework for other enterprises to prevent risks in perfor mance gambling.Through in-depth analysis,this paper draws a conclusion t hat there are valuation risks,goodwill impairment risks,risks of setting too high performance targets,non-performance of performance gambling agreeme nts,difficulties in implementing gambling targets and other risks in the perf ormance gambling process of mergers and acquisitions.In view of the many risks existing in the performance gambling process of mergers and acquisiti ons,we can adopt the following measures to strengthen risk control: determ ining reasonable merger and acquisition policies,paying attention to due dili gence,reasonably evaluating the value of target enterprises,reasonably settin g gambling agreements,determining appropriate performance targets,strength ening control over the gambling period,sending senior management to clear enterprises and so on.The deficiencies are as follows: First,due to the late start of the imple mentation of performance gambling commitments in China,there are few art icles analyzed through case studies,which have a certain impact on the refe rence and research of this article.Second,the study of a single case has its particularity,which may make it difficult to comprehensively summarize th e risks existing in the performance gambling between the main parties in al l merger and acquisition enterprises.