Research On The Factors And Risks Of High Premium For Listed Companies Acquiring Neeq Enterprises

In recent years,China’s SME share transfer system has developed rapidly,and more and more high-tech enterprises have entered China’s SME share transfer system.However,the liquidity of China’s SME share transfer system does not match the growth rate of the number of listings,many enterprises try to cross over to a better development platform,therefore the new "M&A tide" arises at the historic moment.Is the reason for the high premium due to the better expectation or the bubble caused by blindly following the merger wave? What risks will high premium bring to enterprises? This paper studies the factors and risks that influence the high premium of m&a,and provides suggestions for the newly emerging behavior of "listed companies merging with neeq enterprises",help enterprises determine the price of merger and choose more scientific merger plans,and bring more profits to the company.Therefore,it is of great practical significance to study the influencing factors and potential risks of high premium in m&a between listed companies and neeq enterprises.This paper adopts case study method and literature research method,combines financial data to analyze the cases.This article selects the largest acquisition premium case of China’s SME share transfer system in 2016——listed company Nanyang shares mergered neeq enterprise TOPSEs.The article explained the background,basic information of both parties and acquisitions’ motivation and valuation.The influencing factors of high premium are analyzed from three perspectives,including the industry of the target company,the growth ability of the target company,the unrecognized intangible assets off the balance sheet.This article also analyzes the high premium may bring financing risk,goodwill impairment risk,integration risk and the corresponding risk control measures.It is concluded that the above influencing factors all have played a certain role in promoting the merger premium.According to the synergistic effect of post-merger integration and the positive response of the capital market to the merger,it can be seen that the premium is relatively reasonable.In this way,some referable suggestions will be provided to the listed companies that will conduct mergers and acquisitions in the new third board market.