Research On Performance Commitment Risks Management Of Company T Acquiring Company G

In recent years,the number and scale of mergers and acquisitions in China have continued to increase,and the use of performance commitments in mergers and acquisitions has shown an upward trend.The rate of non-compliance with performance commitments has increased year by year,and performance commitment risks have gradually emerged.The establishment of performance commitments was originally to protect the interests of acquirer and to help acquirer to deal with risks in M&A transactions to a certain extent,but in actual,it will bring new risks to acquirer,and even increase risks that acquirer faces.In 2020,due to the impact of Covid-19 and national policies,the wave of Chinese corporate mergers and acquisitions has reached a new peak,and the number of performance commitments that it brings has also reached a peak.In this case,it is important to conduct research on the risk management of performance commitments in M&A.It has very important practical significance.Through the research on the performance commitment risk management of company T acquiring company G,combined with the actual situation of the performance commitments,the level holographic method and expert scoring method are used to identify the performance commitment risks.Taking the different stages of performance commitment as the basic perspective of the hierarchical holographic model,and combining expert scoring results to design a complete framework for performance commitment risk identification.Identifying the valuation risk and performance commitment target setting risk before the signing of the performance commitment,the integration risk and financial fraud risk in the implementation of performance commitments,and the goodwill impairment risk and the beach of contract and litigation risk after the failure of performance commitments.Based on the identification of the performance commitment risks,the analytic hierarchy process is used to calculate the relative weight of each performance commitment risk,and the fuzzy comprehensive evaluation method is used to divide the performance commitment risk into three levels,so as to achieve the purpose of evaluating the performance commitment risks.Finally,according to the assessed performance commitment risks’ levels,measures to deal with different levels of risk are proposed.For high-risk and medium-risk performance commitment risks,company T needs to spend relatively more energy to deal with them,and there should be multiple countermeasures to ensure the reduction of performance risks.For low-risk performance commitment risks,T company cannot let it go,and it needs to take effective countermeasures.Through the research on the performance commitment risk management of company T acquiring company G,and identifies,evaluates and deals with the performance commitment risks that exist in it.This study provides a reference for other acquirers to conduct performance commitment risks management.