Research On The Prevention Of Corporate M&A Betting Risks

With the increasing popularity of equity investment in China’s capital market,betting agreements are becoming more and more involved in M&A of listed companies and play a crucial role.As M&A is a major investment activity with high risk,signing a betting agreement becomes an important tool for listed companies to reduce the risk of M&A.However,this popular adjustment tool also has a large number of failure cases in its application,and the failure rate of betting has been climbing.The study of risk identification and control of "betting agreements" will be beneficial to improve the success rate of listed companies in using betting agreements to promote M&A activities.In order to reduce the risk of using betting agreements in China’s M&A,this paper studies the application of betting agreements in M&A through a combination of theoretical analysis and specific cases.First,the article discusses in detail the connotation characteristics and theoretical basis of the betting agreement;then,by summarizing the current situation of the application of the betting agreement in China’s M&A,it introduces the overview of the use of the betting agreement in M&A in recent years,counts the typical cases of M&A using the betting agreement in recent years,and analyzes and summarizes the main risks and related preventive measures revealed in the three stages before,during and after the betting agreement through the segmentation identification method.The main risks and related precautionary measures revealed in the three stages before,during and after the betting agreement are analyzed in detail through the analysis of the whole process of M&A and restructuring of Chengdu Lion’s Roar Technology Co.Finally,we analyze the corresponding measures in the prevention of betting risks and put forward corresponding prevention suggestions for imperfections,summarize the lessons learned,verify the validity of risk identification with the support of specific cases,and form a perfect risk prevention system for betting agreements,in order to provide suggestions for the prevention of betting risks when listed companies carry out M&A restructuring,and provide effective help for listed companies in China,It also provides a reference for similar enterprises that adopt the betting agreement for M&A restructuring in the future.