Research On Impairment Of Goodwill Arising From Mergers&Acquisitions Between SHANGHAI ACE CO.,LTD And SHANGHAI U9 GAME CO.,LTD

As China's economy has entered a stage of rapid development,the capital market has slowly emerged as a merger and acquisition boom.In order to seek better development,listed companies have further expanded their scale,and in response to cultural system reforms,mergers and acquisitions have become an important activity in the company's business process.Goodwill is one of the most controversial assets.In recent years,the topic of goodwill has been the focus of attention of capital markets and standard-setters.With the increase in M&A activity,goodwill has increased its share of listed companies 'assets It is particularly important to accurately measure its value to reflect its authenticity.Traditional enterprises are also embarking on the road of transformation.They often carry out cross-border mergers and acquisitions of assets in emerging industries such as entertainment,games,and the Internet.These light-asset companies are often accompanied by high performance commitments,and high premium mergers and acquisitions generate huge amounts of goodwill.As the gaming industry has entered a golden period,mergers and acquisitions in the gaming industry have burst out since 2013,and most of these mergers and acquisitions were completed at a high premium.This article selects the 2014 SHANGHAI ACE CO.,LTD cross-border merger and acquisition game company SHANGHAI U9 GAME CO.,LTD,which was the A share at that time.The highest premium M&A case in history to analyze the problems of goodwill in M&A.Based on the study and study of related theories,this article analyzes the case of cross-border mergers and acquisitions of the company.After introducing the M&A process,it explained how the M&A generated a large amount of goodwill in terms of the selection of valuation methods,performance commitments,and industry conditions.It also explained the problems and risks in the formation of M&A goodwill.After analysis,it was found that the risks brought by the huge amount of merger and acquisition goodwill have a greater impact on the company and lay hidden dangers for the company's future development.The goodwill exists at the beginning of the phenomenon.Gradually exposed.The problems of high premium,goodwill,and high risk in mergers and acquisitions cannot be ignored,and the impact on the company is long-lasting.Cross-border mergers and acquisitions in traditional industries are to seek profit growth.Hope that the target company has great potential and excellent profitability,and is willing to accept high premium transaction prices.However,high returns are bound to have high risks.This is something that cannot be underestimated in cross-border mergers and acquisitions in traditional industries.In order to reduce the risks brought by mergers and acquisitions and avoid the adverse impact of high goodwill on the enterprise,not only the efforts of the enterprise itself,but also the attention and actions of the standard setters and regulators in order to maintain the stability of the capital market.