High Premium M&A And Value Creation

As an important way of enterprise integration and expansion,merger and acquisition activities have become more and more frequent in contemporary business activities.However,in order to gain control of the target enterprise,the acquirer will sometimes pay a higher acquisition premium for some reason."High premium" mergers and acquisitions events frequently appear in mergers and acquisitions,whether it brings risks to the enterprise and whether it damages the value of the enterprise,there is no unified conclusion.Therefore,the relationship between high premium m&a and enterprise value creation deserves our attention.The research question of this paper is:can high premium m&a create value for enterprises,and discusses the causes of CSG's high premium m&a and its internal mechanism of value creation.Research ideas and research methods:through the analysis of the continuous high premium CSG merger cases,combined with their own literature research conclusion,analyzing the cause of CSG continuous high premium m&a,using free cash flow discount model research high premium whether can create value for enterprises,based on the added value of economic law index decomposition and merger synergies to explore high premium m&a value creation/damaged internal mechanism.The research findings are as follows:(1)CSG's high premium acquisition comes from the following reasons:the choice of payment method for issuing shares,the characteristics of the target enterprise's "asset-light",the choice of valuation method and income method,and the support of performance commitment;(2)CSG continuously creates value for enterprises through high premium mergers and acquisitions;(3)CSG's continuous mergers and acquisitions create value for enterprises by building a system of business synergistic development.Characteristics of this paper:this paper adopts the method of case study,selects CSG's continuous high premium m&a cases as typical samples of high premium m&a,conducts in-depth research on the relationship between high premium m&a and value creation,and enriches the existing research on the relationship between m&a premium and enterprise value creation.Research value and practical implications:this paper provides a case study on the relationship between high premium merger and enterprise value creation.In this paper,using the case method,exploring high premium to mergers and acquisitions and the relationship between corporate value creation,enrich the high premium m&a case study value creation,and the enterprise value creation for the high premium m&a to make some contribution to the research,and the study of the cause of the high premium phenomenon of m&a and acquirers of the mergers and acquisitions decision-making has a certain significance.