Study On The Risk Of Goodwill Impairment In Continuous Mergers And Acquisitions Of Liantronics

With the transformation of industrial structure,upgrading of traditional industries and resource integration of emerging industries,mergers and acquisitions in the capital market are becoming more frequent and active,with the number of mergers and acquisitions and transaction amount increasing substantially.At the same time,it also promoted the increase of the total amount of goodwill,which was followed by the incomplete performance commitments of subsidiaries,followed by the impairment of goodwill of listed companies,which eroded the net profit of listed companies and dragged down the operating performance of the serious problems.The reason is that enterprises do not pay enough attention to the risk of goodwill impairment,or do not have enough experience to deal with the occurrence of goodwill impairment risk.This article takes Liantronics as a typical enterprise,and focuses on the risk of goodwill impairment in its continuous M&A process from 2014 to 2018.First,it sorts out the relevant research on goodwill and impairment of goodwill by scholars at home and abroad,and also sorts out the relevant theories of goodwill impairment risk as the theoretical support of this article.Then it uses comparative analysis to reduce the goodwill of Liantronics.Value risk judgment;use segmented identification method to divide the occurrence of goodwill impairment risk into two stages:initial recognition of goodwill and subsequent measurement of goodwill from the perspective of chronological order,and then use literature research results combined with cases to conduct qualitative and quantitative Analysis to identify the specific risk points of goodwill impairment;finally,put forward targeted risk warning and prevention suggestions for the goodwill impairment risk points identified at different stages.The main conclusions are:first,the impairment of Liantronics’ goodwill has a huge adverse impact on its financial indicators and market responses such as stock prices and market value,and there is a risk of goodwill impairment;second,the risks in corporate value assessment and performance commitment compensation The risks in the signing of the agreement,the choice of payment methods,and the risks in mergers and acquisitions are the main risk points of Liantronics ’goodwill impairment.Third,for the risk identification results of Liantronics’ goodwill impairment,it is recommended that In the initial confirmation phase,the occurrence of goodwill impairment risk is controlled by optimizing the enterprise value evaluation system,facing the performance commitment compensation mechanism,and setting a reasonable payment method.At the subsequent measurement stage of goodwill,attention should be paid to post-merger integration to enable the synergies between the two parties.Effectively play to prevent unfinished performance of the performance,thereby reducing the possibility of impairment of goodwill.In this article,the description of the adverse impact of goodwill impairment risks on companies can to some extent raise the concerns of listed companies on the issue of goodwill impairment risks.At the same time,a more comprehensive analysis of the specific goodwill in the continuous merger and acquisition process of Liantronics Point of impairment risk,and put forward targeted prevention suggestions.I hope that this case analysis can give some inspiration to the listed company’s risk of goodwill impairment in mergers and acquisitions,and make the positive impact of mergers and acquisitions on the company greater.