Risk Management And Enlightenment Of Star Emblem Stock Merger And Acquisition Based On Betting Agreement

As a way to adjust the valuation negotiated by both parties in advance,the betting agreement can restrain the unforeseen events in the future,help the purchaser to solve the problem of information asymmetry,and reduce the difference between the valuation and the enterprise value,so as to reduce the m&a risk caused by inappropriate valuation.The betting agreement can mobilize the enthusiasm of the management of the target enterprise,so that the management’s goal is consistent with that of the enterprise,so as to successfully complete the betting performance and ensure the orderly progress of the merger and acquisition.However,some problems are gradually exposed in the actual application of the matching agreement.Scholars find that the signing of the matching agreement may not reduce the premium level of m&a,but make both parties more willing to make the transaction at a high price,making the excessive goodwill risk more urgent.In recent years,there have been numerous examples of companies using counterparty agreements in mergers and acquisitions,and the failure of counterparty bets is not uncommon.Many enterprises fail to complete the betting because their performance targets are too high,and the compensation they bear is that the company falls into debt crisis,but the application of betting makes the enterprise fall into the abyss step by step.This paper makes an in-depth study of the case of Star Hui’s acquisition of Zebao Technology by combining literature research and case study.First of all,this paper expounds the relevant research of domestic and foreign scholars on the betting agreement,and makes an in-depth analysis of the case of Star Hui’s acquisition of Zebao Technology based on three theories.Secondly,through the in-depth analysis of the management methods adopted by Star Hui Shares behind the success of the betting,the risk management methods of Star Hui Shares in the betting process are analyzed,and the prevention effect is analyzed through the F score model and stock price change index.Finally,based on the above research results,the risk prevention enlightenment of Star Emblem stock is drawn.The enlightenment from the case analysis is that enterprises should choose appropriate investment targets based on the correct analysis of their own needs.Through the establishment of the risk control team,we have an in-depth understanding of the market,industry,policy and other risks of the investment enterprise,and conduct a detailed investigation of its financial status,operating status and personnel situation.After the merger and acquisition,the investment enterprises should be supervised and encouraged to prevent the risk of merger and acquisition by two-pronged means.