Prevention Of High Premium M&A Risk In Film & TV Company

With the upsurge of M&A market and the introduction of relevant documents of the film and television industry encouraged by the state,all kinds of capital have poured into the film and television market,and the M&A behavior of film and television companies is increasingly frequent.Since 2014,the number of M&A in the film and television industry has achieved a significant increase.With the upsurge of M&A market and the introduction of relevant documents of film and television industry encouraged by the state,the number of M&A in film and television industry has increased significantly since 2014,and the growth trend tends to be stable.Along with the upsurge of film and television companies’ Merger and acquisition,the premium level shows a trend of rapid improvement.Due to the particularity of "light assets" mode in film and television industry,high premium merger and acquisition has become a new trend of the current development of film and television companies.In this context,this paper focuses on the risk of high premium acquisition in the film and television industry through the study of the actual case.The main idea of this paper is from the surface to the point and then from the point to the whole,from the whole to the specific and then from the specific case analysis to the general rule of the industry summary.Firstly,it analyzes the development status of film and television industry,sorts out the characteristics of film and television industry mergers and acquisitions,and analyzes and summarizes the valuation and premium of film and television company mergers and acquisitions.Secondly,this paper adopts the case study method and takes Huayi Brothers Media Corporation’s acquisition of Zhejiang Dongyang meila at a high premium as the research object,with the acquisition price of 1.05 billion yuan.Through the specific high premium merger and acquisition activities,combined with the actual transaction information and the characteristics of the film and television industry to analyze the causes of the high premium,and on this basis,the paper focuses on the analysis of the problems and risks in the merger and acquisition.Finally,this paper sum up the film and television company high premium mergers and acquisitions strategic risk,financial risk,operational risk and policy risk and so on four aspects of risk,risk control measures taken by the analysis of mergers and acquisitions party and can be improved,and sums up the film and television company high premium mergers and acquisitions risk framework and proposes the corresponding risk prevention advice.This paper analyzes the risks of high premium M&A of film and television companies,and puts forward corresponding prevention suggestions for each risk,which is helpful for film and television companies or similar cultural media companies to correctly prevent the risks caused by high premium of high overvalued value in the future M&A decision,and provides suggestions for how to make a reasonable M&A decision.