A Study On The Motivation And Performance Of Diversified M&A Of Food Manufacturing Companies

Diversified M & A is an important way for enterprises to carry out scale expansion and realize diversified development strategy.For the traditional food companies,with the frequent food safety problems,as well as the food industry's own low barriers,many food industry sub-sectors are over capacity.Companies with brand and channel advantages began to merger frequently and implement diversification strategy.However,a large number of small and medium competitors can only seek transformation and upgrading,or face the situation of being eliminated.Therefore,for food manufacturers,diversified mergers and acquisitions has become a trend.As the basic means of diversification strategy,it is of great theoretical and practical significance to study the motivations and performance of diversified mergers and acquisitions.In this thesis,the main method of normative research and case analysis is used to analyze the diversified acquisition motive and performance and take Weiwei Group and Zhijiang Liquor as an example.First of all,this article focuses on the relevant theoretical basis and literature review related to the motive and performance of diversified M & A.Secondly,the paper analyzed the motives of Weiwei Group,from the external environmental conditions of M & A and the internal motivation of M & A.Thirdly,the paper analyzed the performance of M & A for Weiwei Group,mainly focused on the main business operation before and after M & A,the industry status before and after M & A,and the financial performance of before and after M & A,and compares it with the corresponding indicators of other companies in the same industry.Then combined with the motivations and performance,the paper analyzed the factors that affect the performance of diversified M & A.The conclusion: From the perspective of motivation of Weiwei M & A,the external environment is mainly due to the stable growth of the food industry market,the support of the M & A policy,and the limitation and diversity of the market capacity.Internal motivation can be analyzed from the management and enterprise development,mainly to promote the enterprise "big food" strategy,expand brand strength,and in order to seek new profit growth point,resulting in synergies and decentralized business risk.From the view of M & A performance and internal integration of Weiwei Group,the diversified M & A makes the short-term performance of Weiwei Group increasing significantly,and the long-term performance is not obvious,and the operating synergies and management synergies have been achieved.Based on the motivation and performance of diversified acquisition of Weiwei Group,from the enterprise's point of view,this paper also explores the factors that affect the performance of diversified M & A,and explores the strategic layout before diversification,the choice of target enterprises and the time choice of acquisition,synergies and other aspects of experience.Finally,combined with the problems found in the process of M & A and the factors that affect the performance of diversified M & A,the related suggestions are put forward to realize the high growth and sustainable development.