Research On Merger And Acquisition Risk Prevention And Control Based On Performance Commitments

In recent years,as my country’s economic and social development has entered a relatively stable growth rate,people’s spiritual and cultural life requirements have been further improved.my country’s cultural industry has achieved breakthroughs with the strong support of local governments and the active promotion of the general public.Development,many film and television companies began to focus on equity financing and mergers and acquisitions,hoping to strengthen their competitive advantages and gain more market share.However,the lack of rational mergers and acquisitions not only did not develop in the expected direction,but made high-premium mergers and acquisitions a norm.At the same time,the drawbacks and deficiencies of uncontrolled mergers and acquisitions have gradually emerged.Many cultural enterprises have fallen into financial crises due to excessive M&A activities,and have even been burdened with heavy debts;The large-scale impairment of goodwill has seriously hindered the further development and growth of the company.In this regard,this paper takes a representative new culture merger and acquisition of Tulip as a case to explore the role of performance commitment in the process of risk prevention and control in the merger and acquisition process.Firstly,this paper sorts out the relevant literature and theories on M&A risks and performance commitments;secondly,by studying the case of New Culture Media’s acquisition of tulip advertisements,it systematically summarizes the process of mergers and acquisitions,the process of signing performance commitments by both parties,and the specific implementation of performance commitments;Thirdly,by using event research method and comprehensive financial index analysis method to analyze the short-term and mid-term and long-term financial performance of the main and merged parties after the merger,the risk prevention and control effect of signing performance commitments is analyzed in detail.On this basis,the development and application suggestions of performance commitment are put forward: in order to ensure the professional and efficient use of performance commitment,and maximize the performance of mergers and acquisitions.The film and television industry and capital market must establish correct risk values: on the basis of strengthening macro market regulation,it is also necessary to check the implementation of policies in a timely manner;conduct objective and true assessments of target companies,and formulate diversified performance commitments;strengthen resource integration and optimization,to reduce the risk of mergers and acquisitions as much as possible,and aims to provide reference for other similar enterprises in my country to sign performance commitments for mergers and acquisitions.To sum up,this paper adopts the single-case study method as the main research method,and selects the new culture merger and acquisition of Tulip as an example to sign a performance commitment.This case is a representative of the film and television industry signing a performance commitment through mergers and acquisitions.It is of great significance for film and television companies and even the entire capital market to achieve stable and sustainable development.