An Analysis Of M&A Based On VAM

With the constant promotion of economic activity,enterprises expect to meet their demands of low-cost expansion and optimized capital integration by acquisitions and restructions,and then promote the enterprises' economic benefits.However,the investors know much less about new market than managers of the enterprises merged.Valuation Adjustment mechanism(VAM)is introduced in the acquisition by investors and financiers to solve the ubiquitous information asymmetry and valuation difference.VAM,whose scientific name is valuation adjustment machanism,was introduced in China by domestic investing mergers in2003 and is getting more common in cases of foreign investors merging domestic enterprises.Merging enterprises reduce the risk of investment and accelerate the speed of capital fund practising through adding VAM.On one hand,it improves the investors' asset security level and investing benefits;on the other hand,it provides measurable business objectives for financiers and promotes internal encourage and restrictions of the enterprises invested,which is beneficial to deal with the bilateral valuation difference and accelerates investment progress.Consequently,VAM is widely concerned and applied in domestic merging market.This text,based on the VAM,conducts performance analysis of enterprises merging cases.In this paper,the domestic and foreign scholars on mergers and acquisitions and the VAM on the relevant literature were summarized.Then,taking Haoxiangni Jujube Co.,Ltd.mergers and acquisitions of becheery and signed the VAM case as the point,using the method of case study,evaluating the implementation of the VAM,the results and the process on the VAM.On the whole,VAM of mergers and acquisitions is a win-win deal for both sides."baicaowei" brings in benefit funds through the introduction of the advantages in VAM of mergers and acquisitions,improving its production capacity and easing the performance."haoxiangni" constantly improves the management level,optimizes the share of sales channels and product structure through gambling process of mergers and acquisitions,improving performance of the company.Good prospects of "haoxiangni" and "baicaowei" in VAM of mergers and acquisitions has some reference significance.It has some reference value for the application of the enterprise to use the VAM.In this paper,through the research on the process of Haoxiangni Jujube Co.,Ltd.mergers and acquisitions of becheery and signed the VAM,I have the following contributions:Firstly,it concludes the VAM as a way for enterprises to complete mergers and acquisitions,and enterprises should treated the application of VAM correctly,Using the VAM in the M & A enterprises reasonable can open up new financing channels which helps the enterprises correctly apply the VAM to corporate mergers and acquisition activities.Secondly,investors in mergers and acquisitions will often require financing companies to increase their performance,but the core competitiveness of enterprises is the key to the sustainable success in the VAM of mergers and acquisitions.There are a lot of financing enterprises pursuing short-term benefit to achieve the financial performance of high-speed growth,but gambling agreement can play an important role in reducing the investment risk and stimulating management level,which makes financing companies have a long-term performance goals.In general,The introduction of the VAM can provide protection for the interests of both parties,enterprises should set reasonable goals in accordance with their own situation in order to achieve the purpose of win-win performance,when enterprise using the VAM.