Analysis of the Motivation and Performance of Merger and Reorganization of Companies Under Performance Commitment--Based on the Dual Case Study of DF Company’s Acquisition of Pride and Fosber

In order to explore how performance commitment affects the performance of corporate merger and reorganization, this paper analyzes performance through financial index method based on double case analysis. There are many case studies on DF Company’s acquisition of Pride Company, but this paper focuses on the analysis of the differences between Fosber and Pride at the time of acquisition, so as to explore the motivation of merger and reorganization under the performance commitment and the performance after merger. Reorganization is a favorable means to improve the competitiveness of enterprises, and it is also a “credit enhancement commitment” made in the case of information asymmetry. However, performance commitment does not mean once and for all, and the motivation of merger and reorganization is also an important factor to be considered when making performance commitment. There are many case studies on the failure of DF Company’s merger of Pride Company, but on why DF Company acquired many companies, only Pride Company got into interest disputes, while other acquired companies fulfilled their performance commitments well. On this basis, this paper analyzes the differences between Fosber and Pride at the time of acquisition, in order to explore the motivation of merger and reorganization under the performance commitment and the performance after merger.