Analysis Of The High Premium Merger Risk

In recent years,the central government has unswervingly implemented the strategy of rejuvenating the country through science and education and the strategy of strengthening the country through human resources.We have given high priority to the development of education,continued to increase investment in education,and accelerated the modernization of education.The future development of the online education industry has broad prospects.Therefore,the online education industry has become one of the targets of many enterprises' m&a transformation.One of the biggest characteristics of the education industry as an asset-light industry is that the proportion of intangible assets is far greater than that of tangible assets,and the value of enterprises cannot be fully displayed in the balance sheet.Therefore,excessive premium and potential high risks behind high premium appear in the merger and acquisition.Through the literature research method and case analysis method,this paper analyzes the reasons of the high-value merger and acquisition of Longwen Education,the large impairment risk of goodwill brought by high-value merger and acquisition,and the risk of financing payment.Research,and proposed three aspects of risk control recommendations for the causes and specific risks of risk,respectively,to prevent high premiums by strengthening planning,rationally assessing corporate value,and giving full play to the supervisory role of the shareholders' meeting and the board of directors;Reputation risk management;improve M&A strategies and financing methods.It has certain reference significance for future mergers and acquisitions of education enterprises and the transition to educational enterprises.