Research On Problem And Countermeasures Of Enterprise Performance Commitment During Cross-industry M&A

With the prosperity of M&A market and the rapid development of cross-border M&A,traditional enterprises’ cross-border M&A aiming at diversified operation or business transformation has become normal.However,the change of regulatory environment brings new challenges,and the problem and controversy of cross-border M&A performance gambling have always existed.On the basis of sorting out the research theories and methods,this paper starts with the current situation of China’s M&A market and the overall situation of cross-border M&A market,and then explores the characteristics and problems of cross-border M&A under the background of China’s supply-side reform.It is found that cross-border M&A of traditional enterprises in China has distinct characteristics,performance commitment,development strategy and M&A transaction mode.In order to further study the hidden dangers and reasons of cross-border M&A performance betting,this paper chooses the typical case of SACE M&A in the long-term era as a case study.Firstly,this paper makes a brief analysis of the performance commitment of cross-border M&A and reorganization of listed companies.Finally,it summarizes the case of SACE cross-border mergers and acquisitions.Through the research,this paper argues that the performance betting method in cross-border M&A and reorganization of listed companies can not only provide security for the mergers and acquisitions,but also magnify the risk of M&A.The main problems are focused on:high premium and high valuation bring high performance commitment,the risk of goodwill impairment,easy to stimulate short-term radical behavior,magnify integration risk,easy to produce "market value management restructuring".How to solve these problems,on the basis of summarizing cases and drawing conclusions,this paper puts forward relevant suggestions on how to rationally adopt cross-border M&A and performance betting.Reduce the negative impact on listed companies when performance commitments cannot be fulfilled in cross-border M&A and reorganization,and provide guarantee for the expected profits and sustainable growth of performance in M&A and reorganization.