Research On Pricing Problem Of Mergers And Acquisition On Chinese Dairy Industry

With the Market economy continuously developing,enterprise merger has become an world trend overwhelming.Enterprise realize the resource for the effective combination by acquisitions,which provides a shortcut for the enterprise expands rapidly. M&A activities on Chinese dairy industry also has become increasingly active, however, enterprise merger also is a very complicated economic behavior, and the research on pricing decision problem which is the key to decide whether the success of M&A, has important realistic meaning and theoretical value.In recent years, for excessive expansion in Chinaese enterprise merger activity, M&A activities was failure by paying too high premium, and offers high prices for the targeted enterprise occurring frequently because of the irrationality choice of pricing mechanism. For keeping M&A activity of success on China dairy industry later, this paper begins with analyzing dairy industry M&A in China, introduces the basic theory of M&A, and system-atically analyzes the value evaluation methods of M&A on the dairy industry, payment methods, synergies-value sources of M&A, factors that influences enterprise merger pricing and pricing mechanism. Mainly by the enterprise value appraisal theory as the starting point, with free cash flow model as the main analysis tools, and tentative research on the haven level, uses relevant financial data, combines with the relevant literature and some ideas of the author, analyses paying high pricing and the choice of pricing mechanism of M&A on dairy industry in China. And with calendar year financial reports of Mengniu enterprise as the basis, this paper takes a case analysis on the enterprise value appraisal, and analyses furtherly the importance of pricing decision reasonably of M&A.The first part of this text introduces some related theories on pricing of M&A, the M&A theory, pricing theory and value evaluation theory. The second part says research on cause of M&A on our country dairy industry,makes a detailed analysis based on the synergy effect and synergy quantized. The third part simply introduces pricing mechanism of M&A-tender offer mechanism, auction mechanism and bargaining offer mechanism, and game playing of pricing are analyzed in detail, it also pointed emphatically out that the most appropriate pricing mechanism on our country dairy industry. The fourth part summarizes the M&A activities and pricing situation on dairy industry, the existing problems and attempts to put forward some suggestions. The fifth part analysises the pricing of M&A by a case, mainly concrete analysis that cases of cofco becoming a shareholder of Mengniu. Finally, the article draws some conclu-sions and looks into the distance.