Research On The Issues Of Goodwill Under Premium M&A Of Xinlunxincai

In recent years,with the rapid economic development in our country,M&A events are more and more common in the market.More enterprises are trying to optimize their own industry through M&A and reorganization transactions,complete business transformation,expand rapidly to improve their competitiveness.With frequent mergers and acquisitions activity,m&a has exposed problems in the process of gradually increased,in recent years,more corporations have paid high premium for M&A,behind the high premium is high goodwill,goodwill impairment risk were sown at this time,although the m&a performance has been signed by both parties promise to a certain extent,to protect the profit of the acquirer.However,the "big bath" of performance is a matter of frequent occurrence after the commitment period,for which the acquirer will choose to withdraw goodwill impairment,the goodwill impairment will not only cause a huge impact on their own operation,but also damage the interests of stakeholders.Under the above background,on the basis of predecessors’ research,this article combed the premium m&a,goodwill and goodwill related concepts and theoretical basis,and choose new nylon material acquisition qian hong electronics as the research object,in the case of follow-up development process of mergers and acquisitions and mergers in introduction,the study found that new nylon material acquisition main problems are: The initial consolidated goodwill was too high,the subsequent measurement of goodwill was defective,and the company’s performance declined rapidly.The formation of huge goodwill is mainly caused by the new nylon new material eager to seek transformation,unreasonable performance commitment and improper valuation method of Qian hong Electronics;In the subsequent process of goodwill treatment,the impairment test method adopted by the company has the defects of strong subjectivity and high test cost.One-time provision of a huge amount of goodwill impairment is also one of the direct reasons leading to the huge net profit loss of new fiber new material and the interests of stakeholders.Above the problems and cause analysis,this paper puts forward relevant suggestions:In the early stage,acquisitions should conduct careful and keep the valuation reasonable,try to reduce the possibility of high premium m&a;For subsequent measurement of goodwill,this paper takes performance commitment as the starting point,putting forward during the commitment period alone after the expiration of the amortization method is adopted and a separate impairment test method is used to,in the form of a mixture of two methods for subsequent measurement can effectively poured out early goodwill bubble and more real reflect the actual development of the new nylon material after m&a trend;In order to effectively prevent the negative impact of goodwill impairment,enterprises should improve the strength and quality of the disclosure of goodwill information,and regulators should strengthen the supervision of M & A transactions.