The Impact of Performance Commitments on Acquirers in Mergers and Acquisitions

Taier Heavy Industry Co., Ltd. as an Example

DOI

10.2991/aebmr.k.220405.148How to use a DOI?

Keywords

Listed company; Mergers and Acquisitions; performance commitment

Abstract

In this paper, the case study method is used to analyze the impact of performance commitment on listed company Taier Heavy Industry Co.,Ltd.’s acquisition of Zhongmai Technology . It is found that performance commitment to a certain extent reduces the risks taken by the acquirer in the acquisition process, which is helpful for the acquirer to steadily implement the development strategy. However, if the performance commitment of the acquiree is not achieved, it will still have a great negative impact on the profitability, solvency and subsequent operation of the acquirer. Finally, this paper puts forward relevant suggestions on the negative impact of performance commitment on the acquirer, which has certain reference value for enterprises to avoid the risk of mergers and acquisition and protect their own interests in the future Mergers and Acquisitions.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Wang Gaiyun
PY  - 2022
DA  - 2022/04/29
TI  - The Impact of Performance Commitments on Acquirers in Mergers and Acquisitions
BT  - Proceedings of the 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022)
PB  - Atlantis Press
SP  - 882
EP  - 885
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220405.148
DO  - 10.2991/aebmr.k.220405.148
ID  - Gaiyun2022
ER  -