Research On The Impairment Of Goodwill In Mergers And Acquisitions

With the continuous loosening of relevant policies and the further development of enterprises themselves,mergers and acquisitions have become a “sweet pastry” in the capital market.The rapid growth of goodwill derived from mergers and acquisitions has become a time bomb binding listed companies.The impairment of goodwill will bring about a decline in profitability and even a change in performance.In recent years,many companies have exposed a series of problems due to the huge amount of goodwill impairment preparation,which has aroused strong concern in the capital market.The initial confirmation and subsequent measurement of goodwill itself are both complicated and controversial,and the issue of impairment of goodwill urgently needs to be further explored and studied.Based on this background,this paper chooses Guangyi Science and Technology(300356)listed on the GEM of Shenzhen Stock Exchange in 2012 as the case study object,uses literature research method and case analysis method synthetically,and takes Guangyi Science and Technology as the starting point to withdraw 34,413,030,000 yuan of goodwill impairment preparation in 2017,and analyses the reasons for the withdrawal of goodwill impairment and the risk performance of the huge amount of goodwill impairment.The unreasonable premium evaluation of Suorui Electric Company,the unstable excess profitability of goodwill,the failure of integration of both parties in the late period of merger and acquisition,and the non-performance of the underlying assets after the performance commitment period all lead to the impairment of goodwill.In terms of the risk performance of impairment of goodwill,the main reasons are the sharp decline of corporate profits and the sharp increase of debt repayment risk.Finally,aiming at the problem of impairment of goodwill,this paper puts forward some improvement measures,such as strengthening the audit of rationality of M&A premium,improving the laws and regulations of follow-up measurement of goodwill,increasing the strength of substantive integration after M&A,and improving the quantitative assessment after performance commitment period.