The Performance Evaluation And Comparative Of Mengniu Merger And Shuanghui Merger

After more than 20 years of accumulation, Chinese enterprises start using mergers and acquisitions(M&A) to increase the efficiency of resource allocation, realize the rush development of enterprises. At the background of significantly increased willingness of M&A, and the vigorously promote of domestic policy, the domestic M&A market ushered in a new stage of development, the trading activity of domestic M&A is promoted sharply. 2013 is called ‘the first year of China merger matket’ by some people. There are a lot of high cost of M&A transactions, each is more attractive than the one before. But few people pay attention to what can bring for the enterprise after M&A. An M&A may bring to the enterprise leap development, or a lot of burden. In this case, we should focus on the study of whether M&A create value.This paper first briefly analyzes the current situation of Chinese M&A, which leads to the two M&A cases—Mengniu merger and Shuanghui merger, which were introduced briefly in papers. And then we analyze the concept and types of M&A, the basic meaning of M&A performance. We summarize usual methods of M&A performance studying, and introduce the basic theory of these methods. On the basis of previous research, we analyze and compare the advantages and disadvantages of these methods. And then we analyze the causes and process of Mengniu merger and Shuanghui merger in detail. We use event study method to research the short-term performance, use EVA index method to research the long-term performance. Finally we compare the performance of these two cases, and analyze the factors which influence the performance.Though the above study, we found that the results of short-term performance and long-term performance are different sometimes for the same case. The firm which has bad short-term performance may be able to obtain good long-term performance after integration.Secondly, the type of merger and payment methods will directly affect the performance of M&A. And compared to domestic acquisitions, cross-border mergers have more risks. Differences in cultural background and consumer habits may hinder the development of enterprise which is experienced merger. We put forward the corresponding suggestions respectively based on the above points. Before the transnational mergers, we should have been fully prepared. We should make a fieldwork about the management situation of the acquired enterprise, and study the economic environment and the related law in that country.To use of a variety of payment methods, reduce the pressure on cash flow. Draw support from the professional ability of intermediary to simplify the process of M&A.Give play to the guiding role of the government, but the leading role of market can not be ignored.