Research On The Risks And Prevention Of Valuation Adjustment Mechanism Used In The M&A Of Film And Television Industry Enterprises

In recent years,due to the adjustment of China’s economic structure,the film and television industry has been booming under the support of policies,and the film and television industry has also set off a wave of mergers and acquisitions.However,due to the characteristics of the film and television industry,the M&A premium rate is generally high and the M&A risk is large.Therefore,the Valuation Adjustment Mechanism(VAM)is widely used in the M&A of film and television enterprises.However,due to the problems in the application of VAM,VAM has not played its due role in adjusting premium and reducing risk.at the same time appeared in recent years,many film and television star enterprise m&a cases of "shell company" also makes new risks,are derived from the VAM need to be attention.Therefore,this thesis takes Huayi Brothers,a leading company in the film and television industry,as an example,and analyzes the case of Huayi Brothers’ merger and acquisition of the star "shell company" Dongyang Meila’s implementation of the VAM.In the later stage,the potential risks of the VAM will be analyzed separately from these three stages.Finally,by combining the reasons for the formation of gambling risks in the Huayi Brothers M&A,the corresponding gambling risk prevention and control recommendations are still proposed from the three stages of the implementation of the VAM in an attempt to build a systematic risk prevention and control system for the VAM.Through analysis,this thesis found that the signing of Huayi Brothers’ gambling agreement did not diversify risks for the company.Instead,it exacerbated the occurrence of a series of potential risks such as high premium risk,performance quality risk,and goodwill impairment of M&A,which brought Huayi Brothers.A huge financial burden has come.In corporate mergers and acquisitions,if the VAM can be used reasonably,it can take advantage of its advantages to bring a win-win situation for both parties to the merger.Therefore,starting from the Huayi Brothers M&A case,this thesis believes that whether it is in the film and television industry or other industries,the use of VAM should be rational and cautious,and potential financial risks should be evaluated,prevented and controlled before signing the agreement,In order to better apply the gambling agreement to my country’s capital market.