Research On Goodwill Impairment Of High Premium Merger Of Runhe Software

In the context of China’s high-quality economic development and fierce industry competition,in order to realize the positive role of mergers and acquisitions in resource allocation and industrial layout reform,the state has issued a series of policies to support and guide enterprises to carry out mergers and acquisitions.A large number of enterprises expand their business scale through consecutive mergers and acquisitions,and the phenomenon of high-premium mergers and acquisitions is not uncommon.As a result,the scale of goodwill increases and bubbles become serious.Some listed companies take this opportunity to raise the M&A price for interest transmission,and take advantage of the defects of the current impairment policy to carry out "financial cleaning" of the huge amount of goodwill,resulting in huge risks and hidden dangers in the current M&A market.In the high-premium M&A cases of Run and Software cited in this paper,the valuation premium rates of the underlying assets are as high as 508.4% and 623.3%respectively,thus forming a huge amount of goodwill.In 2019,the concentrated provision and impairment of goodwill led to strong turbulence in the company’s financial data and a great negative impact on the company’s own business development.Break the normal order of the stock market,the majority of investors suffered tragic losses.Based on the above background,this paper takes Runhe Software as the case subject to carry out specific analysis,and analyzes the motives of high-premium acquisition and goodwill impairment by using market synergy theory,company value evaluation theory and information asymmetry theory.Further analyze the economic consequences of corporate goodwill impairment,and analyze the short-term market performance of enterprises through event research method,and find that the provision of huge goodwill impairment has a great negative impact on the company’s stock price;The financial performance is analyzed by the ratio analysis method.The profitability,solvency,operational ability and development ability are all reduced due to the impairment of goodwill and are significantly lower than the industry average.Using Tobin Q-value method and comprehensive stock price chart to analyze the long-term market value performance,it is found that market investors have strong confidence in Runhe software.Finally,the whole process of M&A of Runhe Software is analyzed,and enlightenment is drawn from the aspects of the selection of M&A target,the structure of consideration payment,the internal management of listed companies and the effectiveness of third-party agencies,and some reference opinions are put forward,such as rationally using various methods to evaluate enterprise value,rationalizing the structure of consideration payment,strengthening internal supervision and management and strengthening the effectiveness of third-party intermediaries.As a listed company,it should use multiple methods to comprehensively evaluate the value of assets,limit the proportion of share-based payment,and reasonably set performance commitments.As an intermediary agency,it should maintain its independence and strengthen the training of employees’ professional level and professional ethics.As regulators,we should establish and improve relevant standards,strengthen supervision and law enforcement,and strictly implement the requirements of goodwill impairment information disclosure of listed companies.