Research On Merger And Acquisition Goodwill Of LJ Company

In the current era when supply-side structural reform still dominates China's economic operation,mergers and acquisitions,as a sharp tool for enterprises to expand efficiently,expand rapidly and become stronger.Mergers and acquisitions actively promote the adjustment of industrial structure and play an irreplaceable key role in the capital market.Goodwill,as a product of mergers under different control of enterprises,has gradually gained the attention of the capital market with the increasing number of mergers and acquisitions and the amount of transactions.The difference between the merger cost and the fair value of the identifiable net assets of the merged enterprise is recognized as goodwill.Goodwill is a double-edged sword.On the one hand,the higher the goodwill,the greater the potential value it will bring to the enterprise in the future business process.On the other hand,the loss of goodwill impairment will not be reversed after the loss is determined.Once the merged enterprise fails to achieve its performance commitment,the loss of goodwill impairment will directly cause the loss of current profits of the enterprise.As an LED manufacturer,in order to seek the transformation to outdoor advertising marketing,LJ Company began a long way of mergers and acquisitions in 2013.By the end of 2017,the total value of goodwill generated by LJ Company reached 4.638 billion yuan.In 2017,LJ Company undertook goodwill impairment for seven companies,with a total provision of 790 million yuan for impairment.The sword of goodwill has penetrated LJ Company's performance.This paper takes the merger and acquisition goodwill of LJ Company as the research object.Firstly,the research results of experts and scholars are analyzed and sorted out.On the basis of theory,the related financial data of LJ Company,mainly time-sharing media company,are summarized,and the problems of merger and acquisition goodwill of LJ Company in the process of merger and acquisition of time-sharing media and Explore its causes.Finally,from the overall point of view,it puts forward suggestions on the future M&A business,the formation of M&A goodwill and subsequent measurement disclosure.In the process of joint-venture photovoltaic company relying on endogenous growth and extension development to jointly promote enterprise profit growth,goodwill is unavoidable.The expiration year of performance commitment is approaching one after another,and the number of promises has not been realized in succession,which cast a cloud on the future development of LJ Company.It is hoped that through the analysis of this paper,it can provide support for the reasonable and effective development of M&A business in the future,help enterprises standardize the subsequent measurement disclosure of goodwill,and disclose reliable financial information to the capital market.