Research On The Causes And Economic Consequences Of Non-compliance Of Performance Commitments In The Acquisition Of Jianrui Woneng

With the constantly changing market environment and increasingly severe competition today,when companies want to expand their scale and upgrade,they cannot rely on the company's endogenous growth to meet the development needs of the company.Mergers and acquisitions.In recent years,M&A and reorganization has been favored by enterprises as an extensional expansion method.However,due to the high risk of asymmetric information M&A and reorganization,in order to reduce the risk of information asymmetry in M&A and reorganization,performance commitments have emerged.With the continuous development of China's capital market,performance commitments are widely used in corporate mergers and acquisitions,and performance commitment issues have become increasingly prominent.There have been a large number of cases of unsatisfactory performance commitments in M&A and reorganization.Failure to meet performance standards will not only adversely affect the acquirer,but also affect the healthy and stable development of China's capital market.In this context,the causes and economic consequences of failure to meet performance commitments are studied to provide some lessons and references for improving performance commitment systems and other companies.This article selects traditional industry mergers and acquisitions of the new energy battery industry,which is a strategic emerging industry,to take the typical cross-border mergers and acquisitions that are seeking transformation as the research object.The specific research case is Jianrui Woneng's acquisition of Shenzhen Wotema.On the basis of combing the previous research viewpoints,research theories and methods,this article uses the methods of literature analysis,case study,comparative analysis,event research and other methods to analyze the case from the following aspects.First,the entire The introduction and analysis of the basic situation of the case,one is the basic overview of the two parties of the merger and acquisition,the second is the design of the performance commitment plan in the case of mergers and acquisitions,the third is the performance commitment implementation and compliance,compensation agreements,and the fourth is the motivation for the two parties to propose performance commitments.Secondly,from the external factors and internal factors,analyze in depth the reasons why Jianrui Woneng failed to meet its performance commitments in the acquisition of Shenzhen Wotema.Then,it studies the economic consequences caused by the failure of performance commitments to the acquirer,and analyzes the impact of performance performance failures on companies from the perspectives of goodwill,financial performance,financial risk,market response,and the interests of small and medium shareholders.Finally,the conclusion of the case is drawn,and corresponding suggestions are made at the company level and the policy level for the issue of performance commitment failure.The research results show that the use of unreasonable performance commitments in M&A and reorganization does not provide favorable protection for the acquirer,and the acquirer cannot consider the use of performance commitments in M&A and reorganization as a one-time operation.In M&A and restructuring,first,both parties to the merger and acquisition must use performance commitments scientifically and reasonably,such as selecting a suitable valuation method for the underlying assets and setting realistic performance targets.Then,both parties of the merger and acquisition must strengthen the integration of various aspects after the merger and acquisition,and strive to achieve a synergy effect of 1 + 1> 2.Finally,relevant departments need to further improve the performance commitment system in order for performance commitment to play a more effective role in the market.