Research On Goodwill Problems And Optimizing Strategies Under Ourpalm's Continuous M&A

The past five years have been an active period for A-share listed companies to conduct M&A transactions.At the same time,the total goodwill generated by mergers and acquisitions is also soaring year by year.By the end of the third quarter of 2018,the total goodwill of A-share listed companies had reached 1.45 trillion yuan,eight times that of six years ago.Among them,the total goodwill of GEM listed companies has reached 0.28 trillion yuan.In this wave of mergers and acquisitions,the game industry with high profit margin,strong development potential and enjoying the support of national dividends has sprung up.The game industry exerts its characteristics of light assets.By virtue of its advanced technology,brand value and other advantages,it can leverage great value with less investment,which makes the game target generally have a premium rate of more than 1500%.Because there are many cases of high reputation in the gem industry,people begin to pay attention to the hidden bubble risk.Although high goodwill can increase the total assets of a company,its impairment risk will endanger the normal operation of the company in the future,and the interests of investors will be infringed.On the basis of relevant theories,this paper introduces the case of Ourpalm's continuous M&A activities for analysis.After sorting out the course of its successive M&A,this paper analyses the causes of the huge goodwill of Ourpalm from the selection of valuation methods and the setting of performance commitments,and points out the problems and risks in the process of dealing with the goodwill of Ourpalm.After analysis,it is found that the risk brought by the huge merger of goodwill of Ourpalm will have a greater impact on the company's stock price,profitability and other aspects,and hide a deep hidden danger for the future development of the company.Therefore,starting from the problems of merging goodwill in Ourpalm's continuous mergers and acquisitions,this paper puts forward corresponding optimization suggestions and risk prevention measures.Firstly,in the initial confirmation stage of merger goodwill,the target company should be fully investigated in combination with its own strategy before merger and acquisition,so as to standardize the asset evaluation of the target company,improve the performance compensation scheme,and improve the accuracy of valuation.Secondly,in the subsequent measurement stage of goodwill,the specific operation process of impairment test should be improved.For goodwill accounting information,this paper suggests that the voluntary disclosure should be changed to mandatory disclosure,and the corresponding penalty mechanism should be formulated.In addition,as the current capital market continues to attach great importance to and pursue the game industry,the high investment,high premium and high risk of M&A activities in the game industry-the "three high" problem remains high.This paper also expects to provide beneficial reference for investors and managers in the GEM game industry and help them optimize their investment and business decisions through the study of merger Goodwill under the continuous M&A of Ourpalm Co.,Ltd.