Research On Financial Performance Evaluation Of M&a Of Advertising Media Enterprises Based On Entropy TOPSIS Method

With the acceleration of the integration of the media industry,more and more cases of mergers and acquisitions appear in the market.The core of mergers and acquisitions is to conduct full due diligence and analysis of the target company's finances,because the results of financial due diligence and performance evaluation will directly determine the transaction between the two parties.Consideration is of great significance to both buyers and sellers,and it is a decisive link that affects the interests and decision-making of both parties.It is particularly important for all stakeholders to use reasonable methods to accurately analyze the financial indicators of the target company and make accurate predictions.This article sorts out and summarizes the literature on financial performance evaluation of mergers and acquisitions,and analyzes and identifies the financial factors of my country's media industry on this basis,and tries to establish a financial evaluation index system for the media industry.The core content of this paper includes the establishment of the resume of the financial evaluation index system and the corresponding evaluation model.Based on the actual situation of mergers and acquisitions in the media industry,this paper constructs an evaluation model with two levels of indicators.The research content of this article is divided into 7 parts.The first part introduces the research background and significance of this article,establishes the technical roadmap of the article research,and systematically reviews the relevant financial performance evaluation(especially in mergers and acquisitions).theory.Part2 introduces related definitions and concepts,mainly expounds the related concepts of the media industry and financial performance evaluation,and expounds the connotation of related theories.The third part is the analysis of the current situation and source of mergers and acquisitions in the media industry,sorting out the financial performance evaluation indicators of the media industry,including four aspects:profitability,solvency,operating ability and development ability.The fourth part is the core of this article.Based on the previous analysis,the financial evaluation index system of the media industry is constructed,including 4 first-level indicators and 13second-level indicators.The entropy method is used to determine the index weights and grades.The fifth part is a case analysis.This article adopts the case of YL Media's merger and acquisition of ZQ company,carries out a quantitative analysis of its financial affairs,evaluates its financial indicators,and reminds the potential financial risks in this merger.The sixth part is to analyze the case,comprehensively consider the methods and applications of financial performance evaluation in the media industry mergers and acquisitions,and explain how to apply financial performance evaluation in mergers and acquisitions,including four aspects: due diligence,finance,model,premium.The seventh part is conclusions and prospects.It summarizes the above analysis,discusses the theoretical and practical significance of this article,and puts forward the prospects for the next step of the research on the deficiencies of this article.The research conclusions of this article have the following aspects: This article uses entropy method to assign weight to the selected financial risk measurement index system,and uses TOPSIS method to evaluate the annual financial benefits of media companies.Judging from the actual case of YL Media's merger and acquisition of ZQ Company,in this ZQ Company's merger and acquisition project,the financial status of the company has changed from good to bad,but the future profit forecast tends to be optimistic,which contains potential financial risks.The comprehensive application of the above methods is reliable.Based on the above conclusions,this article proposes the following countermeasures: 1.Due diligence should be as diligent as possible,2.Financial analysis should be comprehensive and perfect,3.M&A transactions should be properly modeled,4.Valuation premium should be judged reasonably.