Research On The Risk Prevention Of Qtone Education Group’s Mergers And Acquisitions Based On Performance Commitment

In the past few years,mergers and acquisitions have been highly sought after in my country’s capital market.During the merger and acquisition process,the acquirer often signs a performance commitment agreement to weaken the risks it faces such as information asymmetry.However,at the same time,there have also been problems such as the failure of performance promises,the difficulty in effectively implementing the triggered compensation clauses,and the increases of goodwill impairment.These problems have brought risks to the development of the company.As a typical "Internet & education" enterprise,QTone Education Group has agreed on performance commitments in most of the merger and acquisition agreements after listing,which eventually led to the sharp rise and fall of its stock price.This paper will study the M&A risk issues and risk prevention of QTone Education Group based on performance commitment.This paper selects the event of QTone Education Group mergers and acquisitions.Based on a literature review of performance commitments and mergers and acquisitions theory and policy.Firstly introduces the basic situation of both parties involved in the merger and acquisition of QTone Education Group,during the merger and acquisition process,and the design of performance commitment terms.motivation.Then,from different aspects,such as the performance commitment before signing,the M&A risk of QTone Education Group is studied,in which the event research method and financial indicator research method are used to analyze the pricing risks that QTone Education Group may face in the process of M&A.Industry risks,risks brought by performance commitment clauses,goodwill impairment risks,etc.Finally,on the basis of identifying these risk factors,the corresponding countermeasures are put forward to prevent the M&A risk of performance commitment from both the acquirer and the supervisory level.This paper explores the risk factors of performance commitment to QTone Education Group from three dimensions: The possible risks before signing the performance commitment,the risks brought by the performance commitment terms and the possible integration risks after signing the performance commitment are discussed respectively,and analyzes the risks you face in the M&A process one by one.It is concluded that QTone Education Group faces a high valuation premium before the performance commitment is signed,and the performance commitment terms will also have too single indicators and set too high settings,and after the performance commitment is signed,there will be a large number of defaults and excessive reliance Performance promises to increase profits and other conclusions.Finally,according to the risk points of the M&A of QTone Education Group,this paper puts forward different preventive measures for the company level and the supervisory level,hoping to help the acquirer in the Avoid the risks brought by high valuation and high commitments during the course of mergers and acquisitions.