A Study On The Risk And Prevention Of Performance Commitment In Merger And Acquisition Of Chemical Enterprises

Performance commitment has long been regarded as an essential tool in the process of major asset restructuring.Based on the evolution of gambling agreement,due to the existence of performance commitment,on the one hand,it can promote the success of merger and acquisition transactions between the two sides in merger and acquisition,on the other hand,it can provide corresponding guarantee for the sustainable and coordinated development of enterprises in the future.However,from the number of literature studies in recent years,we can see that there is a gradual increase in adverse consequences of performance commitment and major risk prevention.This paper uses case analysis method to study performance commitment items through specific examples and to analyze chemical industry which has more serious performance commitment problems.This paper analyzes the basic situation of performance commitment in chemical industry on the basis of literature integration.Due to the tightening of national environmental protection policy and the development trend of industry transformation and upgrading,the merger and acquisition transactions of chemical enterprises have increased at present and the resulting performance commitments are also gradually increasing.Then based on the information asymmetry theory,the signal transmission theory and the risk management theory,the risk in the failure case of Wansheng stock performance commitment is analyzed.There are high valuation risk and high performance target risk in the performance commitment items,as well as operational risk,management dereliction of duty risk and third party audit risk in daily production and operation of the chemical enterprises.Finally,in order to reduce the probability of risk occurrence in the performance commitment of chemical enterprises,the relevant preventive suggestions are put forward according to the previous theoretical basis and the concrete practice of chemical enterprises.Through the study of the risk of performance commitment of chemical enterprises,the following conclusions are drawn.First,the problem of performance commitment in chemical industry needs to be solved urgently,and the failure of performance commitment of chemical enterprises to reach the standard rate has risen to more than 30% which seriously affects joint and upgrading progress in the chemical industry.Second,the risk of performance commitment of chemical enterprises is also diversified that is evident in the performance commitment procedures.Third,the risk prevention to the chemical industry performance commitment to should be targeted.The suggestion of this paper is that in view of the phenomenon of high valuation,enterprises should fully understand the basic business information of merger and acquisition enterprises from the macro and micro aspects in advance,select fair and independent evaluation institutions and asset appraisers,and reasonably select asset evaluation methods.In order to reduce the risk of high performance commitment,it is suggested that enterprises replace the true value of performance target with performance target interval,broaden the content of performance commitment agreement,and enhance the rationality of performance goal formulation.On the premise of preventing the risk of high valuation and high performance commitment,we should pay attention to the daily operating risk and the risk of management dereliction of duty in the performance commitment of chemical enterprises.Enhance its ability to resist risks,clear the information disclosure system,improve the ability of internal supervision,and increase the punishment of financial fraud by improving the enterprise’s own management ability,strengthening the personnel management and other means.Pay special attention to the importance of third-party audit supervision,and the performance commitment of chemical enterprises can be smoothly carried out by promoting the full-staff supervision.