Research On Goodwill Impairment And Risk Prevention Inchina's Enterprise Mergers And Acquisitions

Along with the fifth wave of global mergers and acquisitions in the 1990 s,mergers and acquisitions have quietly risen in our country,and they are becoming more and more intense." The high valuation,high premium and high-performance commitments in M & A transactions means that a lot of goodwill will follow closely behind,and the potential impairment risk accumulated behind it cannot be underestimated.With the changes in the goodwill standard system,from the development situation in recent years,the company's impairment of goodwill in subsequent fiscal years has gradually increased due to the failure to meet the standards.What factors lead to the generation and impairment of goodwill in mergers and acquisitions,and what is the internal relationship between goodwill impairment and form?In this context,this article selects a typical "snake swallow elephant" merger and acquisition case in the new energy industry of the hot industry-Jianrui Woneng merges with Watma,analyzes the reasons for the generation and impairment of goodwill in the merger,and explains the huge The emergence of goodwill is a hidden danger for its subsequent impairment.It further analyzes the economic consequences of the impairment of goodwill by enterprises and investors,and proposes corresponding risk prevention measures based on the consequences.M & A is a double-edged sword.While the acquirer enjoys the resulting increase in valuation,the acquirer must also bear the bitter results of the impairment of goodwill that has severely affected its performance.This paper studies the recognition and subsequent impairment of goodwill in corporate mergers and acquisitions,and the consequences of impairment,and puts forward policy recommendations to prevent corporate managers from blindly acquiring and causing goodwill to thunder.It has certain implications for inspiring companies to determine transaction pricing in a reasonable and rational manner in mergers and acquisitions,to treat high premiums and the formation of large amounts of goodwill,to reduce the extent to which subsequent impairment of goodwill impairment has an adverse effect on corporate performance,and to have a certain degree of corporate mergers and acquisitions.