Research On The Causes And Preventive Countermeasures Of Goodwill Impairment In Continuous Mergers And Acquisitions Of KAISA Jiayun Technology Inc

M&A is an important means for enterprises to expand their scale,enhance their competitiveness and realize diversification and strategic transformation.The state has issued a series of policies to encourage enterprises to merge and reorganize.With the continuous development of China’s economy,Internet companies have ushered in a period of rising industries.Many traditional manufacturing companies choose to cross-border mergers and acquisitions of Internet companies to achieve enterprise transformation and upgrading.However,some enterprises blindly acquire at a premium,resulting in higher goodwill.Under the background of strengthening the supervision of goodwill impairment and the expiration of performance commitments,enterprises have accrued goodwill impairment,leading to the occurrence of goodwill storm.Taking the continuous cross-border M&A of Jiayun Technology as an example,this thesis introduces the motivation and process of continuous M&A,the confirmation and impairment of goodwill,and the impact of goodwill impairment on the enterprise economy,and analyzes the impact of goodwill impairment on the short-term stock price of enterprises by using the event research method.Starting from the pre-and post-mergers and acquisitions period,the comparative analysis method is used to analyze the changes in the financial data of the pre-mergers and acquisitionsand post-mergers and acquisitions period,and the causes of goodwill impairment under successive mergers and acquisitions are studied.It is found that the failure to fully identify the risks of cross-border M&A before M&A and the overvaluation of the target company will lead to high premium M&A,high proportion of share-based payment and high performance commitment target will also lead to the formation of high goodwill,which will affect the impairment of goodwill in the later period of the enterprise;After M&A,the management’s earnings management motivation and poor financial synergy will also affect the impairment of corporate goodwill.Based on the above analysis,this thesis puts forward the countermeasures to prevent the impairment of corporate goodwill before and after M&A.Before M&A,it is necessary to do full due diligence to reduce the risk of M&A decision.It is also necessary to choose appropriate evaluation parameters and methods to prevent the formation of high premium mergers and acquisitions.It is necessary to set performance commitment targets according to the actual ability of the target company and make adjustments when necessary.In addition,it is necessary to choose the appropriate payment method and determine the appropriate payment ratio;After M&A,it is necessary to strengthen internal control,guard against the motivation of earnings management of management,and also strengthen the capital integration of M&A subsidiaries,improve the efficiency of capital utilization and realize financial synergy.It is hoped that the analysis of this thesis can arouse the attention of the regulatory authorities and investors to the issue of goodwill impairment,and give some enlightenment to similar listed companies to deal with the risk of goodwill impairment in mergers and acquisitions,so that mergers and acquisitions can exert more positive influence on the company.