Research On The Application Of Valuation Adjustment Mechanism In Premium Risk Prevention Of Cross-border Mergers And Acquisitions

In recent years,under the background of constant adjustment of economic structure and deepening of supply-side reform,some traditional industries are facing difficulties in development and need to adjust their business models urgently.In contrast,emerging industries have good prospects for development due to their own technological advantages and the continuous introduction of state support policies.In order to cope with the change of external environment and disperse business risks,traditional enterprises have chosen cross-border mergers and acquisitions to enter emerging industries.However,the valuation problems in M&A,especially the premium risk,remain high.In this context,the emergence of valuation adjustment mechanism provides an effective way to resolve the valuation differences between the two sides and preventing high premium risk.This paper takes the successful cross-border merger and acquisition of Y company of education information industry by A company of traditional ceramics industry as the research object,mainly from the aspects of information asymmetry,limitation of traditional valuation method and price negotiation ability to analyze the premium risk in cross-border mergers and acquisitions of enterprises.At the same time,from the point of view of the mergers and acquisitions,this paper studies the specific design and application of valuation adjustment mechanism by combining qualitative and quantitative with the effect,it can provide reference experience and theoretical guidance for Chinese listed companies to arrange betting agreements in cross-border M&A.It is found that in the current environment where the market economy is not perfect,the arrangement of valuation adjustment mechanism in cross-border mergers and acquisitions provides a way to prevent premium risk,but it is only if a well-designed and flexible gambling agreement can effectively play its role.Therefore,enterprises need to carefully use valuation adjustment mechanism,pay attention to due diligence and negotiation,reasonably evaluate the value of the enterprise,consider the internal actual situation,and analyze the value of the valuation adjustment mechanism,so as to design a scientific and effective gambling clause in order to achieve cross-border mergers and acquisitions and prevent premium risk.