A Study On Goodwill Impairment Of Shanghai Yitong Acquired By Jiuqi Software

In recent years,the increasing popularity of my country's M&A market has caused the scale of M&A transactions to frequently break existing records.The degree of premium in mergers and acquisitions has been increasing year by year,and the behavior of premium has gradually become the new normal in the economic market.With the expansion of the scale of corporate mergers and acquisitions and the continuous increase of premiums,the book value of goodwill has risen rapidly among listed companies,and there have been many huge impairments of goodwill.As the occurrence of goodwill impairment continues to erode the profitability of listed companies,it has a serious negative impact on the effective operation of the market.In this context,this article selects Jiuqi software as the target of the case study,conducts a thorough research on the company's acquisition of Shanghai Yi Tong at a premium and a huge impairment of goodwill,and lists the factors that lead to the merger premium.Analyze the reasons for the impairment of large amounts of goodwill,and at the same time clarify the economic consequences caused by the impairment of goodwill,so as to provide corresponding suggestions for enterprises,regulatory authorities,investors and other parties.Based on the study of literature and theories related to goodwill impairment under M&A premiums,this article first analyzes the high valuation of Jiuqi Software's acquisition of Shanghai Yi Tong,and the research points out the direct reasons for the high pricing of M&A companies It is because of Jiuqi's strong willingness under the software strategic plan that the negotiation is at a disadvantage,and the underlying assets are subjectively overvalued.Then,through a reasonable analysis of the goodwill impairment of the M&A transaction,it is believed that the high performance commitment under the premium is the primary factor in the goodwill impairment.The integration problem after the merger also promotes the occurrence of the event,and at the same time the goodwill impairment It also caused serious economic consequences.And the following enlightenments are drawn from this: 1.For related companies:rational mergers and acquisitions,give full play to the functions of the board of directors,shareholder meetings and other functional institutions;strictly control over-high performance commitments;attach importance to post-merger integration and effectively exert synergies.2.Regarding regulatory authorities: strengthen the supervision of “high premiums and high performance commitments”;strengthen the disclosure of information on mergers and acquisitions.3.For investors: rational investment raises awareness of risk prevention.