Research On The Causes Of High Premium Mergers And Acquisitions In Beijing Culture

M&A is an important way for enterprises to expand capital and optimize the allocation of resources.In recent years,the light asset industry represented by the Internet,science and technology,film and television media,games and so on has been developing and growing,and the upsurge of M&A has arisen.especially in the process of M&A of cultural enterprises,more and more high premium phenomena appear in the public view,behind the causes of people's thinking.In order to promote the development of the capital market,China explicitly issued relevant documents in 2014 to encourage listed companies to conduct merger and reorganization.Since the regulation was loosened,the transaction events of mergers and acquisitions in all walks of life in China have shown a blowout growth,and the value added rate of mergers and acquisitions has been continuously increasing.The premium of mergers and acquisitions has become increasingly serious in the capital market,especially in the film and television industry with high added value.However,in recent years,the success rate of high-premium M&A continues to decline,which seriously affects the performance of enterprises and the stability of the capital market.In 2019,a number of listed companies in the film and television industry caused huge losses in statements due to the goodwill accumulated by the withdrawal of mergers and acquisitions,among which Beijing Culture is a typical one.So how did the high premium come about,and was it justified? What are the factors that drive up the premium in M&A? This paper takes Beijing culture as the research object,and studies a series of M&A in 2013 and 2014 as specific cases to comprehensively discuss the causes of its high premium M&A.This paper combed the related literature,reviews the related theory,combined with Beijing culture in 2013 and 2014 of the culture of the ferris wheel,the partner and Milky Way a series of high specific premium m&a transaction process,then found that the high premium of mergers and acquisitions are not all reasonable,with the improvement of m&a premiums,tends to decrease the possibility of excess earnings actual implementation,resulting in enterprise m&a premiums paid become risk,and harm the interests of the company,in goodwill,etc on the capital market related assessment objective negative impact,there is also a infringement on the interests of minority shareholders.For causes,the analysis of the endogenous and price structure and generating principle,on the basis of a series of Beijing cultural merger analysis the cause of the high premium,according to the Beijing cultural acquisition in the whole process of mergers and acquisitions high premium an analysis is made in all kinds of factors,including the purpose of mergers and acquisitions,asset evaluation,performance pledge,payment method and Angle of macro environment will further push the high premium generated.In view of this,this paper puts forward some suggestions for the causes of high premium,hoping to restrain the generation of high premium to a certain extent,improve the rationality of M&A pricing,and ensure the efficiency of market M&A.When the enterprise designates the merger and acquisition strategy,it should make clear the matching between the merger and acquisition strategy and the merger premium,and make a feasible plan.In the evaluation process,professional intermediary agencies should be employed to eliminate information asymmetry as far as possible and reasonable valuation methods should be selected.A single valuation model has corresponding disadvantages,so multiple valuation models should be selected for comparison to finally determine the value of the enterprise.At the same time,strengthening integration to achieve higher integration efficiency and synergistic effect after M&A is an important standard to evaluate the rationality of high premium and an important measure to effectively control premium risk.