Research On The Causes And Countermeasures Of Failed Performance Commitments In Cross-border M&A

Mergers and acquisitions are a major form of capital operation and management for enterprises.Among them,cross-border mergers and acquisitions are important means for enterprises to expand their scale,occupy more markets,and achieve diversified operations.Performance commitments are a guarantee tool for achieving expected returns.It plays an important role in restructuring transactions.However,in recent years,the performance performance of cross-border mergers and acquisitions is unsatisfactory.Therefore,this article takes Suzhou Jieli,a traditional manufacturing company's successful precision merger and acquisition of an emerging diaphragm industry company as an example,to analyze the causes of corporate disappointment in cross-border mergers and acquisitions and propose relevant countermeasures.The article first introduces the M&A activities of Shengli Precision M&A Suzhou Jieli,and then analyzes the reasons for the performance loss of the diaphragm industry company Suzhou Jieli and the reaction of the capital market.Through analysis,the performance loss of Suzhou Jieli was due to insufficient understanding of the risks of the M&A industry before Shengli Precision M&A,which led to an overestimation of the profitability of the target company,and an overestimation of the target company's Suzhou Jieli.After the merger and acquisition,in addition to the market environment factors of industry subsidies retreating and industry expansion and competition,the company also has poor internal management and management,failed to exert its synergies,and the management conflicts between the two sides of the merger and acquisition,the company's management conflicts,making the company's profit not as expected Eventually results in performance loss.Finally,the article puts forward specific suggestions on the causes of performance loss.Enterprises should scientifically formulate M&A strategies before M&A,and reasonably evaluate corporate value to make reasonable performance commitments.After M&A,they should strengthen the integration of target companies and their targets.The company's management and monitoring ensure the completion of performance commitments.At the same time,we should strengthen the role and responsibilities of intermediaries and supervisory departments to avoid performance loss.