Anjie Technology’s Acquisition Of Veibo Precision Performance Commitment Motivation And Effect Research

M&A and restructuring is an important way for the capital market to promote the development of the real economy and realize the company’s development strategy,and the effective regulation of its market order is an important issue related to the transformation and upgrading of the real economy.Since 2008,the CSRC has required listed companies to sign performance commitment compensation agreements with transaction parties in mergers and acquisitions,and its policy was originally intended to restrain the opportunistic behavior of the target party based on its information advantages through this contractual arrangement adjusted after the fact,protect the interests of the relevant parties to the merger and acquisition,and contribute to the healthy development of the M&A market.In 2015,China’s M&A market began to develop explosively,and performance commitments were widely used.At the end of2018,a large number of companies’ commitment period has ended,a considerable number of companies have not completed their performance commitments,and many of them have blindly acquired and maliciously used performance commitments,which have a great impact on the financial status of listed companies and harm the interests of small and medium-sized investors.Through the research on the motivation and effect of M&A performance commitment,it can provide a reference for enterprises and shareholders to analyze the true value of M&A.Therefore,this paper chooses to use this as an entry point to study it.This paper reviews the existing research results of performance commitment,adopts the case study method,and analyzes the motivation and economic effects of the performance commitment signed by Anjie Technology and the acquisition of Veibo Precision as the research object.First,based on the situation of both parties to the merger,the motivation for signing performance commitments is analyzed from the perspective of synergy effect and market response.Secondly,based on these two perspectives,the financial analysis method and the event research method are used to analyze the economic effects,and the actual economic effects are compared with the expected targets to analyze the reasons for the differences.Finally,conclusions are drawn through analysis.Enterprises usually sign performance commitments to reduce agency costs and achieve synergies;There is some degree of deviation between the actual economic effects achieved by the performance commitment and the desired results;Whether performance commitments can be fulfilled will be affected by many factors.In view of the reasons for the differences,this paper puts forward corresponding suggestions,and multiparty joint efforts to promote the rationalization of valuation,reasonably set up performance commitment plans,pay attention to the operating conditions of target companies,and pay attention to the economic trends of the industry.It is hoped that the performance commitment can play a positive role in the original preset and put forward certain reference significance for the enterprise.