Research On Risk And Control In The High-premium M&A Of Perfect Global

In the context of supply-side reform,resource integration has been strengthened,under the environment that the market “Matthew effect” is becoming more and more obvious and the industry concentration degree continues to improve,the game industry is eager to carry out transformation and diversified expansion through M&A1.As the typical of asset-light companies,its assets are not easy to evaluate and the market is unstable,which leads to frequent high valuations.Therefore,its premium M&A are often seen in the capital market.Considering the risk of high-premium M&A,less relativetheoretical on asset-light M&A in the existing literatureand typicality about the selected cases in this paper,this study will have a strong theoretical value and practical significance for the control of high-premium M&A risk.This paper adopts literature research method,theoretical analysis method,case analysis method and financial index analysis method,and takes Perfect Global high-premium acquisition of Perfect World as an example.Starting from the topic background,theoretical significance,research content and research method,so as to have a theoretical groundwork to depth study of the topic.Secondly,having a summary on the relevant literature about the motivation,risk,risk prevention and control of premium M&A,andexplain relevant concepts.And based on the theory of motivation and risk of M&A,premium M&A is analyzed theoretically.Then,the case of Perfect Global high-premium acquisition of Perfect World is introduced,andthe process of M&A is analyzed from three aspects: the current M&A situation ofindustry,introduction of bothcompanies and programe of M&A,M&A motivation and high-premium reason.Then,enter the risk and control analysis section of the high-premium M&A of Perfect Global,and focus on the analysis of the possible risks in high-premium M&A and Perfect Global’s risk control,Finally,targeted financial and non-financialdatais used to evaluate the effectiveness of risk control.Based on the conclusion,problems will be finded out and corresponding suggestions will be put forward.The study found that the profitability and solvency of Perfect Global had been greatly improved after the merger.Meanwhile,with the help of integration of technology and market resources,Perfect Global’s competitiveness and market influence had been greatly improved,to some extent,to some extent,it reflects that Perfect Global has achieved good results in the implementation of risk control of premium M&A.However,the problems of low turnover of inventory and accounts receivable and lack of cost management in operation management contain the risk of subsequent integration.Based on the experience and deficiencies of the case company in risk prevention and control,this paper puts forward four suggestions:First,give full play to the role of performance commitment in risk aversion;Second,choosepayment method reasonably and finance prudently;The third is to evaluate the situation and formulate the strategy of business development;Fourth,make a integration plan,and continue to pay attention to the integration after the merger.