The Risk Identification, Prevention And Control Of The Gambling Agreement Based On The Perspective Of The Acquirer

The valuation adjustment mechanisms,also called the valuation adjustment agreement,is a written treaty between the investor and the financier to protect their own interests from being infringed,as well as a constraint on uncertainties in the future.In the economic activities in which valuation adjustment mechanisms are often used to invest in mergers and acquisitions,on the one hand,mergers and acquisitions do not trust the future profitability of the acquiree,and on the other hand,they can minimize the probability of failure of the merger.If the valuation adjustment mechanism is used properly,both the acquirer and the acquired party will win.If the use of the valuation adjustment mechanism fails,both parties will suffer heavy losses.As of now,the failure rate of gambling in China's enterprises is as high as 68%.If gambling fails,mergers and acquisitions losses are particularly devastating.This requires mergers and acquisitions to pay attention to avoid the risks posed by valuation adjustment mechanisms.This article takes the Blue focus classic betting case as an example,and stands in the perspective of the Blue focus of the M&A party,and combines related theories to conduct detailed analysis and exploration.This article uses a combination of normative research and case studies,starting with related theories of valuation adjustment mechanisms,and based on principal-agent theory and game theory,in-depth analysis of cases.First of all,through analyzing and explicating the case of Meiguang Interactive and Bojie Advertising for Blue focus,from the perspective of the Blue focus acquirer,choose to use the segmentation method for the Blue focus.The identification of key risks,including the risk of ineffective due diligence prior to the signing of the valuation adjustment mechanism,the existence of valuation risk,risk of impairment of goodwill,risk of ineffective management supervision,and the signing of valuation adjustment mechanisms moral hazard.Secondly,after analyzing the Blue focus' s existing risk control measures,Secondly,the status and problems of the blue focus' s risk control for valuation adjustment mechanisms are analyzed.Finally,the paper adopts risk control methods such as risk monitoring,and risk mitigation,and gives corresponding risk control measures and solutions to the Blue focus valuation adjustment mechanism,including mergers and acquisitions should establish a due diligence mechanism,solve the difference in valuation due to asymmetric information between the two parties,and the acquirer should improve the profit compensation provisions,encourage and constrain the acquiree's management,establish a sound and effective risk management system,and manage crisis management.It is expected that it can effectively control all kinds of bet risks that exist,and provide certain reference for China's future risk control over all the purchasers of gambling agreements.