Study On The Financial Effect Of VAM Agreement In Enterprise Merger And Acquisition

China’s rapid economy development provides a good environment,which promotes more enterprises to achieve expansion and development through merger and acquisition,so the betting agreement is normally used in the merger and acquisition transactions.But the failure of M&A is also emerging one by one,which makes the merger and acquisition enterprises sign the gambling agreement suffer losses and have bad influence.In December 2017,China Ceramics announced that it planned to acquire the remaining shares of Shenzhen Altron.Given the extremely high valuation of the acquisition,it signed a three-year betting agreement with Altron to protect its rights and interests.By 2019,Altron has overfulfilled the performance of the agreement,this is a successful story in the M&A world,so this study can complement the bet on a case study of the agreement and help other businesses grow promote industry development is of great significance.From the basic theory and the actual research status of M&A and bet on agreement,to study the porcelain material M&A motivation,bet against the terms of the agreement,such as enterprise valuation method,the calculation of performance compensation are analyzed,the effect of porcelain material after M&A market,the yield changes and stock price changes are analyzed,then emphatically analyzed financial performance and EVA to appraise the financial effects of bet agreement,finally considering the strategic layout of porcelain material and then get the research conclusion:In the M&A,enterprises can sign a bet agreement to reduce the valuation risk and cost.We should notice following problems: to choose the acquired enterprise carefully when signing the gambling agreement,to evaluate the acquirer reasonably considering all aspects of factors,and strengthen various coordination effects.Finally,it explains the lack in this paper.