Risk Control In The Process Otf M&A

With the development of China's economy,the upgrading of traditional industries and the acceleration of resource integration in emerging industries,the scale of mergers and acquisitions in China has been blowout in recent years.While the number of mergers and acquisitions is large and the scale is large,the events of high premium merger and acquisition also occur frequently.The result of high premium merger and acquisition is to accumulate a large amount of goodwill,while also hidden a huge amount of goodwill reduction risk.In order to cope with the risk of merger and acquisition under the high premium,many enterprises have been asked to control the original shareholders by signing the valuation adjustment mechanism,but it is not uncommon for the acquired companies to fail to fulfill their performance commitments.In this thesis,I will take the acquisition of so called M&A leader BlueFocus Corp.and TibetBojie Corp.as an example.On the basis of a large number of relevant papers and research reports related to media industry,through the analysis of the present situation and trend of development of mergers and acquisitions in both operating conditions and industry,analyse the causes of the transaction,introduces the transaction process,principle of pricing and performance commitments made by the acquired companies.I also analysed the way of payment in this case,the risk and risk control methods in this transaction.Finally,I summed up the experiences and lessons in this transaction,it is concluded that the future development trend of the acquisition targets is very important;we should try to avoid large-scale and continuous mergers and acquisitions;pay attention to the integration of personnel after the acquisition.I hope this thesis could be a reference for other companies in media industry in the process of merger and acquisition.