Research On The Impairment Of Goodwill Of Tianji's Merger And Acquisition

In recent years,M & A has become an important means for listed companies to expand their business,extend their industrial chain and improve their profitability.However,because of the high goodwill of M & A in the capital market,it has become a "black swan" of performance,which has a certain risk to the operation and sustainable development of enterprises.Therefore,this paper mainly uses the case study method to select Tianji shares in cross-border M & A as the case study object,to explore the high goodwill formed in the M & A and the subsequent risks.First of all,through combing the literature and basic theoretical knowledge to accumulate the previous research experience and the theory needed to lay a good foundation for the subsequent writing of the paper;Secondly,from the macro level,this paper analyzes the situation of goodwill and its impairment of M & A in China's capital market under the wave of M & A.Finally,from the micro level,this paper analyzes the background,process and results of Tianji's M & A of Xintai materials,analyzes the reasons for the high goodwill of the acquirer and the impact of the risk of goodwill impairment on the enterprise.Through the analysis,it is found that the main reasons for the high goodwill are the high valuation of the underlying assets and the impact of national policies;The subsequent impairment of goodwill is also largely affected by factors such as the strong sensitivity of the target enterprise to the changes in the industry environment,the imperfect integration and management of its own M&A,and the high premium formed in the early stage.After the impairment of goodwill,it will bring some risks to the performance mutation and stock price fluctuation of the enterprise,and also affect the subsequent financing of the enterprise.Therefore,based on the case analysis,some suggestions are put forward to prevent high goodwill and goodwill impairment.On the one hand,in terms of theoretical methods,we should improve the methods of M & a valuation and goodwill accounting measurement,in which the income approach used in this case focuses on the future,more on the future income of assets.However,income approach is influenced by strong subjective judgment and unforeseen factors of future income.This is also part of the reason why most M & A companies have high valuations.There is also room for discussion on the measurement method of goodwill accounting.Now academia and business circles have also launched a heated discussion on goodwill accounting,aiming to develop a measurement method more in line with the development of enterprises at this stage.On the other hand,for the enterprise itself,due to the influence of information asymmetry and other factors,we should fully evaluate the industry development status of the target enterprise,business risk factors,the future integration ability of the enterprises of both sides.These considerations lay the foundation for the design of subsequent M & A transactions.So as to reduce the risk of goodwill impairment caused by high goodwill as much as possible.Therefore,in order to prevent the risk,we should be more careful to deal with the above links to prevent the possible risk.