The Research Of Chinese Enterprise M&A Motivation And Performance

Merger and Acquisition has become an important way to expand business scale and enhance their competitiveness. As one ofthe top 10 merger cases in 2012,the M&A between Monmilk and Yshili has been concluded. But how it performances, whether it could provide lessons for future.The dairy industry mergers and acquisitions, we need to go into details.The article first analyzes the theoretical and practical study of the motivation and performance for current mergers and acquisitions.Secondly, the article takes Monmilk and Yshili as a case study, combined with the practice to study the impact of the performance for Monmilk. Based on the introduction of merger-related background, this article analysis the motivation.Based on its M &A action, the motivations are: operating synergies, financial synergies, technical decision, enterprise development needs and to expand market forces, which is the theoretical based on.Thirdly,the article analyzes the performance of the M&A financial and non-financial performance. At first, it builds a financial performance evaluation system based on comprehensive,real objectivity, comparability, availability principle, including the solvency aspects of operating capacity, profitability, growth capacity and business development. The solvency select the current ratio, quick ratio and cash ratio of three indicators to measure; operational ability to select the accounts receivable turnover ratio four indicators to measure the total asset turnover, inventory turnover and liquidity asset turnover; profitability select the earnings per share, the four indicators to measure the rate of return on net assets, sales,profit margin and gross margin; growth ability to select the net asset growth, the growth rate of total assets, net profit growth and revenue growth of 4 indicators.