Identification And Analysis Of M&A Risk Of Shinva Medical Under Performance Commitment

During recent years,the number of M&A transactions in China has shown an upward trend.But tracking these M&A transactions it is founded that the M&A results did not meet the transaction expectations,such as strategic misalignment,the valuation bias,poor M&A performance.Therefore,in order to protect the rights of small and medium shareholders,modify the valuation premium rate,and to motivate management to achieve the expected performance,there has been a ?performance commitment? between the M&A transaction parties.At present,although performance commitment is no longer mandatory,the performance commitment has become a market-based M&A condition in M&A transactions.It proves that performance commitment is efficient in reducing M&A risks in some degree.However,under the premise of performance commitment,the failure of domestic M&A failure or the failure of M&A performance still exists.Therefore,it is of great significance to identify and respond to the risk of corporate mergers and acquisitions under the conditions of performance commitment,and it will also be useful for future enterprises in practical operations.This thesis takes Shinva Medical‘s acquisition in Yingde Company as a case to identify and analyze the risk of corporate M&A under the performance commitment.The first part is the introduction,which contains the background of the topic,the meaning of the topic and the main analysis content and methods.At the same time,it also combs the domestic and foreign related literature in performance commitment and M&A risk as the writing guidance.The second part is the concept definition and the theoretical basis of the paper.This part details the performance commitment and the theoretical basis of the application,such as: information asymmetry,signal transmission and HHM analysis framework.The third part is the acquisition event review,describing the basic background of the merger and acquisition and the whole progress of acquisition events.The fourth part is the identification of M&A risk.Based on the merger and acquisition environment and the characteristics of the M&A,the M&A risks of Shinva Medical in the M&A event are analyzed.The research finds the risks are valuation risks,performance target setting risks,performance commitment payment,ways to choose risk,financial risk,strategic resource integration and organizational structure integration risk.The fifth part is the revelation and suggestion.According to the analyzed risk,this part proposes several reasonable improvements in Shinva Medical's M&A pricing,performance target setting,compensation payment method,integration,etc..The final part is the conclusion,summarizing the main content of this paper summarized.