Case Study On Performance Compensation Commitment Of Merger And Acquisition Of “waterman”by “jianrui Fire”

With the continuous dvelopment of China's economy,enterprises have also expanded rapidly in this economic wave,and mergers and acquisitions have become the main development mode of enterprise expansion.Since 2014,the domestic M & A market has developed rapidly,and both in terms of the size of M & A and the rate of M & A have seen breakthrough growth compared to the past.Through mergers and acquisitions and reorganizations,enterprises can obtain financial support and technology integration,further improve their production and operation capabilities and promote leapfrog development.However,there are many cases of anti-viewers mergers and acquisitions and reorganizations.There are also many disadvantages in enterprises' mergers and acquisitions,especially the restructuring changes in the equity structure and control rights,which will cause damage to small and medium shareholders and other interests.In response to this situation,the China Securities Regulatory Commission issued and implemented the "Measures for the Management of Major Assets Reorganization of Listed Companies" in 2008,which proposed a performance compensation commitment mechanism.After decades of revision and improvement,this management method has continuously strengthened Supervision and management of capital market asset reorganization.Although at the level of theoretical analysis,performance compensation commitments can bring the advantages of improving the transparency of mergers and acquisitions and reducing the uncertainty and risks of the future earnings of the target company,there are still many cases where companies still fail to fulfill performance commitments or even compensate.Further analysis,although a performance compensation commitment is proposed,if the performance cannot be compensated and the compensation is not timely,it will also damage the interests of small and medium shareholders.In summary,a case study of performance compensation commitments in corporate mergers and acquisitions is a very meaningful task.This article selects the case of Jianrui Fire Merger and Acquisition of Watermar for analysis,explores the implementation of profit compensation commitments in M ??& A and restructuring,and studies its impact from the perspective of small and medium shareholders.First of all,this paper reviews the research results on performance compensationcommitments in domestic and foreign mergers and acquisitions,and further sorts out the impact of performance compensation commitments on the perspective of protecting the interests of small and medium shareholders,laying the theoretical foundation and starting point for the analysis of the full text.Second,Focus on the industry and business conditions of the two parties in this case,analyze the transaction plan,performance commitment,and compensation arrangements for Jianrui Fire's acquisition of Waterma,analyze the reasons for Jianrui's acquisition of Waterma,the reasons for the failure of the performance promise,and the failure Obvious effects,financial changes,and market response changes;Finally,the conclusion of the case analysis is drawn: performance commitment compensation has limited protection for the interests of small and medium shareholders,and failure to meet performance standards may even infringe the interests of small and medium shareholders.