A Study On The Merging Risk Of Gambling Agreement

In recent years,under the background of economic structural adjustment,optimization of economic system design and supply side reform,the capital market has been developed continuously,and the M & A activity in the capital market is more and more.The risk of M & The risk of valuation in mergers and acquisitions is particularly acute.In this context,the gambling agreement as a risk management tool came into being,which is mainly used to solve the valuation gap between the two sides and encourage the target business management and other issues.This article provides some suggestions on how to effectively apply the risk management tool to the gambling agreement through case analysis.In this paper,the author analyzes the related theories and present situation,including the theory of M & A,the status quo of mergers and acquisitions,the risk management of M & A,the theoretical perspective of the gambling agreement,the relevant concepts of the gambling agreement As well as from our legal compliance point of view,the degree of recognition of China's legal agreement.Then the case analysis is introduced to illustrate the background of the blue cursor case,and the motivation for the gambling agreement is analyzed,including the motive of the acquirer and the motive of the merged party.Finally,it is also the core content of this article,the blue cursor M & A risk analysis,and analysis of its use of gambling agreement to prevent the effectiveness of M & A risk.The conclusion of this paper: When using the gambling agreement in M & A,we must first understand the nature of the gambling agreement,weigh the pros and cons,decide whether to use it,and do not rely too much on the gambling agreement to risk the risk of M & A.Second,the design of the gambling agreement to be clear on the gambling agreement is an expression of the option,with "high risk,high yield" nature,the value of the gambling itself,otherwise it will underestimate its value,the risk of the gambling itself is the performance Commitment to the completion of the risk,so when the performance set to be considered,we have to reduce the information asymmetry caused by the moral hazard and adverse selection issues,carefully design th e elements of the gambling agreement to improve its effectiveness.