The Research On Goodwill Impairment Of Series Acquisition Of Feilo Audio

In recent years,more and more listed companies through mergers and acquisitions to improve their own development,expand the scale of enterprise production and operation,improve the status of the industry.With the increase of mergers and acquisitions,the amount of goodwill accumulated in the consolidated statements of listed companies is also increasing,which brings a huge amount of goodwill impairment.The calculation and withdrawal of a huge amount of goodwill impairment will have a great impact on the operation and development of enterprises.The huge amount of goodwill impairment caused by mergers and acquisitions of listed companies has become a hot topic in both theoretical and practical circles.Therefore,this paper selects Shanghai Feilo Acoustics Co.,Ltd.as the research object,analyzes the causes and effects of its huge goodwill impairment,and gives reasonable suggestions.This research has practical guiding significance for enterprise merger and acquisition and operation management.Firstly,this paper reviews the literature on the nature of goodwill and the causes of goodwill impairment by means of literature research,which lays a foundation for the followup research.Secondly,this paper briefly introduces the formation and impairment of goodwill in the merger and acquisition of Shanghai Feilo Acoustics Co.,Ltd.and analyzes the reasons for the impairment of goodwill.Finally,the consequences of the impairment of goodwill are discussed.Through analysis,this paper concludes the reasons for the impairment of goodwill of the company's merger and acquisition: the large proportion of merger consideration by means of share payment and the signing of performance commitment will make the initial recognition amount of goodwill higher,thus resulting in the impairment of goodwill;The lack of necessary internal control by the acquirer and the lack of necessary constraints on the acquirer will also lead to the impairment of goodwill.In addition,the lack of good synergies between the acquirer and the acquirer in the later stage will also lead to a large impairment of goodwill.As for the consequences of the huge amount of goodwill impairment,this paper holds that: the impairment of goodwill will cause the profit of the acquirer to decrease significantly,the stock price to decline,and increase the debt repayment pressure of the acquirer.Finally,the conclusion and suggestion are given.High goodwill will bring high risk of impairment.Enterprises should reasonably evaluate the value of the acquired party,strengthen the management of the acquired party,and improve the integration and synergies after merger,so as to reduce the risk of impairment of goodwill.Through the research of this paper,it is expected to provide useful reference for the current M&A activities and the provision of goodwill impairment,and enrich the practical research in the field of M&A goodwill and goodwill impairment.