Research On The Performance Commitment Of Anjie Technology's High Premium Acquisition Of Weibo Precision

In recent years,more and more companies hope to expand their business scale and market share through mergers and acquisitions.However,with the increase in high-premium mergers and acquisitions,the risk of impairment of the goodwill of the acquirer has increased,and performance commitments are used as a kind of valuation The adjustment mechanism can reduce the risk of M&A to a certain extent,but the setting of reasonable performance commitment targets,the compensation mechanism after performance failure,and the recovery of compensation by the acquired party's refusal to pay compensation have become headaches for the acquirer,so how to change The good use of performance promises and how to solve the problems caused by performance failure is a direction worth studying.This article uses the method of case analysis.First,it introduces the research background and research significance,and summarizes the literature review on performance commitments at home and abroad,and briefly introduces the content and ideas of the full text.Secondly,it introduces an overview of corporate mergers and acquisitions and performance commitments,and introduces option theory,information asymmetry theory and signaling theory.Thirdly,it introduces the whole process of Anjie Technology's acquisition of Weibrass Precision case,the background,purpose,process,actual completion of performance promises,actual compensation of performance promises,etc.,and focuses on the analysis of changes in Anjie Technology's operating performance before and after the merger..Immediately after analyzing the problems faced by Anjie Technology after the performance commitment in this transaction did not meet the target,it put forward relevant suggestions.According to the case,the following problems were found: First,Anjie Technology was blindly optimistic about the industry boom;Second,the intermediary agency failed to investigate the actual situation of Weibrass Precision;Third,the actual value of the target company was overestimated;Fourth,The performance commitment target setting is unreasonable;Fifth,the loss of performance results in a large amount of goodwill impairment;Sixth,the profitability of Weibrass Precision has not met expectations;Seventh,the compensation clause is not sufficiently restrictive.In response to these problems,corresponding suggestions are put forward:First,Pay attention to the risks of industry changes;Secondly,Increase The cost of responsibility for intermediaries;Third,Value the target company rationally;Fourth,Set reasonable performance commitments;Fifth,Choose appropriate payment methods;Sixth,Promptly carry out and improve post-merger integration;Seventh,Improve relevant supervision and accountability recovery mechanisms.Although these suggestions are based on the single case of Anjie Technology's acquisition of Weibrass Precision,they also have similarities for companies in similar situations that face performance failures,and hope to provide some reference for similar companies' mergers and acquisitions.