Analysis Of The Value Of The Gambling Agreement In The Merger And Reorganization Of Zhangqu Technology

With the development of the economy,mature companies have chosen to achieve market expansion through mergers and acquisitions,and it has become a consensus to improve competitiveness through M&A.Based on the characteristics of the modern company's market transactions,naturally the two parties to the transaction are not sufficiently aware of their value,which causes them to be underestimated or overestimated.It has a certain hindrance to the operations and profits of both parties.The Valuation Adjustment Mechanism was introduced as a supplementary adjustment mechanism to the mergers and acquisitions of listed companies.However,in practice,they are often linked to "goodwill impairment","substantial shareholder reduction","shareholders' tunnel behavior",etc.The mechanism that was originally intended to protect the interests of the company has evolved into a profit transfer weights.Therefore,it is necessary to correctly understand the value of the valuation adjustment mechanism and use it reasonably.This article mainly discusses the valuation of VAM signed by enterprises in mergers and acquisitions.At present,in practice,most companies use the income method to price enterprises,and it is often easy to ignore the value of the VAM itself.Therefore,This article selects the Zhangqu Technology company in the mobile game industry as the main body of the case,and takes the valuation adjustment mechanism signed during its acquisition of the crab technology company as the research object.The whole text revolves around the essence of the VAM,using literature research methods,quantitative analysis methods and case analysis methods.And it puts forward the idea of pricing the VAM in practice,calculates and analyzes through the specific cases of Palm Fun Technology Company.It is concluded that the VAM has a certain option value,which is cannot be ignored.The main research work and innovations in this article include: The first two chapters elaborate the theoretical basis and institutional background,and then put forward to the construction process of the real option pricing model of the VAM in the third chapter.To obtain an analogous option combination,the article splits the specific terms of the VAM into corresponding option elements,then calculate the value of each option according to the real option model,and add up to get the value of the VAM.Then,taking the case of Zhangqu Technology's acquisition of Play Crab Technology as a research case,By treating the VAM in this event as an option combination of long American put options and short European call options,the B-S model and the binomial tree model were used to separately calculate the value of European options and American options.And then the article analyzed the sensitivity of the uncertain parameters.Finally,it is considered that VAM has a certain value,and this uncertainty can be quantified from the perspective of options.Both the qualitative and quantitative terms in the VAM will have an impact on its value.In the quantitative indicators,the target company's original operating level has a negative impact on VAM,and the stock price volatility has little effect on VAM.The effect of the execution price(the cumulative net profit that the target company promises to achieve)on the VAM is generally inverted U-shaped.Among them,the value of the VAM is the most sensitive to changes in the execution price,and the volatility of the stock price has the weakest effect on the value of the VAM.Therefore,the enterprise needs to set performance commitment indicators in a reasonable and prudent manner in order to maximize the effectiveness of the VAM.