The Performance Analysis Of Shuanghui's Acquisition Of Smithfield

Mergers and acquisitions are important means for enterprises to expand overseas and also play a crucial role in promoting global economic development.Since China's accession to the WTO,Chinese enterprises have begun to focus on the exploration of foreign markets and accelerated the pace of mergers and acquisitions with foreign companies.The volume and turnover of corporate M&A activities have increased year by year.This has,to a certain extent,promoted the continuous improvement of China's economic development level,the continuous increase of the total economic volume,and the significant improvement of the overall national strength,thereby further promoting the pace of the expansion of China's enterprises to the outside world.Cases of overseas mergers and acquisitions have increased year by year.After that,but in these mergers and acquisitions,not all M&A activities bring economic benefits to M&A companies.Some of them not only do not bring economic value to M&A companies and even cause M&A companies to suffer huge losses,resulting in corporate value or shareholders' interests damaged.The food industry has been the focus of attention.This article selected 2013 China's food industry and even China's largest overseas acquisition case—Shuanghui M&A Smithfield as the research object.Up to now,Shuanghui's acquisition of Smithfield and its follow-up integration work have all ended.However,how does the M&A performance play a role in Shuanghui's overall strategic goals,improve financial performance,enhance brand value,and expand market share? M&A and even what experiences or lessons are learned from the overseas M&A of all listed companies,these are all issues that we need to study and discuss in depth in this article.This is also the significance of this article.The first part of the thesis is an introduction,which explains the research background and significance of the dissertation,literature review at home and abroad,the research content,research methods and technical route of this paper,as well as the innovation and deficiencies of this paper.The second part is the definition of basic concepts and the elaboration of related theories.First,it defines the concepts of mergers and acquisitions,cross-border mergers and acquisitions and performance,and then elaborates on cross-border M&A related theories suchas synergy theory,market power theory,and economies of scale theory.Finally,the paper summarizes the M&A performance evaluation methods used in this paper,including the incident research method,economic value added,and balanced scorecard.The third part is the case study of Smithfield's acquisition of Shuanghui,firstly the two sides of the merger and acquisition company and the situation analysis of the two parties before the merger and acquisition,and then introduced the motivation of the Shuanghui M &A case,from the four aspects of market factors,brand effects,technical factors,and economies of scale.Explained.Finally,it introduces the whole transaction process of M&A and the characteristics of M&A.The fourth part is the performance evaluation of Shuanghui M&A Smithfield.From the perspective of short-term and long-term,financial and non-financial aspects,the corresponding performance evaluation method is used to comprehensively analyze the overseas M&A performance.The analysis of the short-term market response uses the event research method;the analysis of long-term merger and acquisition performance is based on the use of balanced scorecards,both in financial and non-financial aspects.The financial aspect uses the financial indicator method to analyze the financial capabilities of Shuanghui M&A and the economic value added analysis.After the Shuanghui M&A,the economic value is increased.The non-financial aspects are analyzed from three dimensions: customer,internal business process,learning and growth.The fifth part is based on the above analysis and analysis of Shuanghui M&A performance and draws conclusions and policy recommendations.Through the above analysis,we can conclude that the overseas M&A has had a positive impact on Shuanghui.In the short term,the stock price has risen and the market has responded well.In the long term,most of the financial indicators have been improved,and the brand value has been repaired and improved.The share has increased and the synergy effect has been achieved.EVA has significantly improved.One of the policy recommendations derived from it is to establish correct motives for mergers and acquisitions;the second is to strengthen the integration after mergers and acquisitions;and the third is to develop the company's core competitiveness.