Research On Risk Management Of Cross-industry M & A In Publishing Industry

At present,China's publishing industry is in a stage of industrial upgrading.Publishing companies' pressure of competition is bigger and bigger.It is difficult for publishing enterprises to gain sustained competitive advantage in the current competitive environment only by the operation of publishing business.Also,many policies have been issued to support cross-industry operation of publishing industry.Therefore,many publishing enterprises choose to diversify to enhance their comprehensive strength and enhance their competitiveness.Cross-industry M & A is a way for enterprises to realize diversified operation.In the process of cross-industry M &A,publishing enterprises will face various kinds of M & A risks,which are usually greater than those in the M & A of the same industry.The research on risk management of cross-industry M & A in publishing industry is conducive to strengthening the ability of M & A risk management,improving the success rate of cross-industry M & A,and promoting the publishing enterprises to stride forward to a high-quality media group in the process of high-quality development.This paper takes Tangel Publishing and Magic Universe as the case study object.Based on product life cycle theory,information asymmetry theory,synergistic effect theory,and M & A risk management theory,this paper uses literature research method,case analysis method,expert opinion method,AHP,FCE.On the basis of understanding the development status of China's publishing industry and the status quo of cross-industry M & A,this paper introduces the historical evolution and main financial indicators of Tangel Publishing and the Magic Universe,and the motivation and process of this case.Then,the expert opinion method was used to identify the risks in the M &A process of Tangel Publishing.This paper uses AHP and FCE to quantitatively evaluate the risk of Tangel Publishing's M & A,then analyzing risk countermeasures taken by Tangel Publishing,analyzing the reasons of failure of risk management mechanism of cross-industry M & A of Tangel Publishing.The case analysis concludes that although Tangel Publishing has taken some measures to deal with the risk of cross-industry M & A,such as determining the M & A strategy based on the development strategy of the enterprise,employing professional institutions,signing performance commitment and compensation agreements,and increasing R & D investment,due to the lack of whole process risk management concept,inadequate risk management capacity at the strategic level,inadequate risk management skills of target enterprise valuation,the lack of assessment of M & A risk,the lack of business integration after M & A and insufficient risk management personnel,the risk management mechanism of cross-industry M & A of Tangel Publishing fails.Therefore,Tangel Publishing should further improve the level of cross-industry M & A risk management.Based on the above analysis,this paper proposes the optimization countermeasures for the risk management mechanism of cross-industry M & A in publishing industry: establish the whole-process risk management concept,strengthen risk management of cross-industry M & A at strategic level,strengthen operational risk management of cross-industry M & A,apply modern advanced risk management technology and strengthen the follow-up vocational education of risk management personnel.It is expected that the research in this paper will enrich the theoretical system of risk management of cross-industry M & A in publishing industry and can provide reference for the risk management of similar M & A cases in the future.