Rongfeng Holdings Acquires Weiyu Medical Performance Commitment Risk And Prevention Research

In recent years,enterprise mergers and acquisitions have been hot,more and more enterprises through the use of mergers and acquisitions to achieve enterprise transformation and upgrading,and in the process of mergers and acquisitions,in order to ensure the smooth realization of the merger business to the greatest extent and their own economic interests are not infringed,in order to reduce the asymmetry in the process of enterprise mergers,it will generally be achieved by signing performance commitment agreements.However,the scope of application of performance commitment agreements continues to expand,and more and more enterprises sign performance commitment agreements in order to pursue short-term interests only for the current smooth mergers and acquisitions,but due to the economic environment and the impact of the enterprise itself,the situation of performance commitments not meeting the standard is increasing year by year.At present,performance commitment has not played its positive role,and in the process of application,new problems and contradictions have been constantly highlighted.Therefore,it is necessary to study the risk points existing in each stage of performance commitment and propose targeted strategies for risksThis paper mainly starts from the identification and evaluation of performance commitment risks,and takes the acquisition of Weiyu Medical by Rongfeng Holdings as the research object.Taking the formulation and implementation of the performance commitment plan and the performance compensation performance as the starting point,from the perspective of the acquirer,the different risks faced in the early stage of M&A integration,the period of performance commitment setting,the period of performance commitment integration and the period of performance commitment performance are analyzed.Based on this,a risk index system for performance commitment was established,and a analytic hierarchy method and fuzzy comprehensive evaluation method were used to quantitatively analyze these risks.In the end,we get the following results:In the process of mergers and acquisitions,we may underestimate the difficulty of merging across industries.The performance commitment setting index is relatively single,the merger and acquisition parties have not been fully integrated,so that the acquired party has not realized the promised benefits,due to the weak binding force of performance compensation,so that the commitment party’s performance ability is insufficient,and eventually lead to the risk of performance commitment,if the subsequent failure to strengthen supervision and improve the performance commitment plan,will greatly make the merger fail.From the perspective of the acquirer,identify the risks related to performance commitment,and propose corresponding measures for risks,so as to use the performance commitment agreement in the merger and make the positive effect of performance commitment reflected to the greatest extent.It provides a certain reference for other M&A enterprises to understand the risks of performance commitment.