Research On Risk Control Of Performance Commitment In The Merger And Acquisition Of Weibo Precision By Anjie Technology

Based on the popularization of Internet applications and the iterative development of R&D technologies for consumer electronic products,consumer base continued to expand.In order to seize market share,the consumer electronics industry has seen a flurry of mergers and acquisitions,the associated M&A risks also gradually emerged.So as to reduce the risk of M&A,performance commitment is widely used in M&A events as a contractual tool for both parties to adjust asset pricing.However,with the expansion of the application scale of performance commitment,the phenomenon of performance failure is common,and the hidden risks under performance commitment ultimately lead to the failure of M&A activities.Therefore,it is an urgent problem to identify and evaluate the risks arising from performance commitments and to seek an effective way to control risks.This paper takes the acquisition of Weibo Precision by Anjie Technology as the research object and analyzes the risks in different stages of the application of performance commitment agreement from the perspective of the acquirer.It is found that the performance commitment signing stage is mainly characterized by valuation risk,performance target setting risk and payment method selection risk;there are integration risk and cash out risk of major shareholders during the performance commitment;the later stage is reflected in goodwill impairment risk and legal risk.Moreover,the fuzzy comprehensive evaluation method is used to rank the importance of risks.The risk evaluation results show that the degree of risk is not consistent,among which the management and control level of goodwill impairment risk is the highest,followed by performance target setting risk,valuation risk and legal risk.Finally,based on the identified performance commitment risks,appropriate prevention and control suggestions are put forward.At the stage of performance commitment signing,the acquirer needs to improve the content of the agreement through rational due diligence of the target enterprise,strengthening the cognition of the level of intermediary agencies,comprehensively use valuation methods and multiple performance reference indicators,and clarifying the installment payment scheme of cash consideration,so as to prevent and control risks.During the implementation stage of performance commitments,risk prevention can be achieved by strengthening the collaborative management of both parties and strengthening the supervision of executives’reduction of holdings;In the later stage,risk control can be carried out by strengthening the supervision of high valuation and high performance commitment,standardizing the disclosure of goodwill impairment information and establishing performance compensation guarantee mechanism.Through the above analysis,it is expected to provide reference for the practical application of performance commitment and improve the ability of listed companies to deal with risks.