A Study On The Economic Consequences Of Continuous Mergers And Acquisitions Of Tianshen Entertainment Company

Merger and acquisition(M & A)can enable the acquirer to quickly acquire the other party's enterprise's technology,market and other benefits,and is sought after by many enterprises.However,merger and acquisition(M & A)also brings risks to enterprises,especially the most overlooked potential risks.Managers are immersed in the immediate benefits of M & A,and the occurrence of risk often makes management caught off guard,thus bringing a heavy blow to the enterprise.Tianshen Entertainment Company is a case in point.Continuous mergers and acquisitions let Tianshen Entertainment Company from the previous worthless,rapid growth into the industry's leading enterprises.Because the enterprises invest too much energy in the process of M & A and neglect the development of the core business of the enterprise,the potential risk centralism erupts when the enterprise develops,resulting in the huge loss of the enterprise.Through the literature research method to consult the relevant research literature at home and abroad,clear research objects and problems to be solved.On this basis,the case study method is used to compare the financial risk,business status,goodwill,innovation ability and the stability of top management before and after the M & A.Through comparative analysis,we found that the financial risk of Tianshen Entertainment Company increased after successive mergers and acquisitions,and its business condition was generally poor,among the selected measures of business performance,except for an increase in the growth rate of total assets,all of the indicators were headed in a negative direction;goodwill accounted for a large proportion of total assets;innovation capacity declined;and there was a high turnover in senior management.Generally speaking,the continuous merger and acquisition of Tianshen Entertainment Company has brought negative impact to the enterprise.Therefore,it can be said that the successive mergers and acquisitions of Tianshen Entertainment Company did not succeed.Finally,through the case study of Tianshen Entertainment Company company,this paper provides some warnings to the related companies that want to carry out mergers and acquisitions,and some suggestions to the corresponding regulatory authorities.