Study On The Motive And Performance Of M&A Of Kedi Dairy Acquisition Juer Dairy

Merge & Acquisition is one of the main methods of achieving enterprise development strategy.On account of this,related activities are held frequently in China.M&A will be able to help enterprises with distributing resources more reasonable and making economics of scale come true;but how to judge its value for enterprise makes the research of M&A performance very considerable.Therefore,this article will combine both the motivation of M&A and M&A performance together and adopting the process of case study and M&A performance evaluation,to analyze acquisition activity between two companies in dairy industry,Kedi dairy and Juer dairy,and analysis of the M&A of whether the increase in the value of Kedi dairy enterprise,for other companies to provide practical reference value of mergers and acquisitions.From 2014,the government carried out many policies to encourage M&A within dairy industry for optimizing resource allocation.In December 2015,Kedi acquired Juer.This paper implements SWOT first,to find out problems of Kedi corporation,and combining both related theory of M&A motivation and practical situation to conclude the specific M&A motivation.Second,by the way of building M&A performance evaluation system,we analyze this performance from two different points: financial performance and non-financial performance.In the matter of financial performance,after financial index method to compare correlative financial index with other companies in the same industry is applied,we find out that the earning of Kedi dairy is mushrooming,profitability and development ability improved a lot,and business efficiency's promotion is far more remarkable.In the spite of the short-term debt paying ability is poor and financial integration should be enhanced to safeguard against financial risk,this M&A is still successful.