Evaluation Of Dakang Pasture Farming Co.,Ltd.,'s Merger Performance Based On "PE+listed Company" Mode

With the rapid development of the world capital market,the demand for mergers and acquisitions has ushered in explosive growth.China has been in the period of capacity overhang.Under the current macroeconomic slowdown,traditional industry need to achieve industrial transformation and upgrading urgently.So raising industry concentration and controlling upstream and downstream resources are the inevitable trend.Industry leaders have expanded to speed up the process of mergers and acquisitions.The government has gradually increased the policy support for the M&A market.At the same time,China's private equity funds are still in the period of rapid development.Since 2011,private equity funds have faced difficulties suc h as IPO blockage and narrower financing channels.PE are in urgent need of expanding new business models to avoid profitability being eroded.In this dual context,The "PE + listed company" model of mergers and acquisitions funded by listed companies and private equity agencies has emerged.Since the “ PE + listed company ''model has only been in existence for more than six years,the existing research on the “PE + listed company” model is still very rare.Current research is more limited to theoretical research,motivation analysis,policy support and regulation recommendations.The research on M&A performance evaluation under this model focuses more on the invested company,there are few studies on M&A performance and corporate value evaluation of listed companies.while is little limited to listed company's merger performance.Therefore,this article will combine literature research method,case research method,qualitative research method,quantitative research method and normative research method to study the China's first “PE + listed company” model—Paradise Dakang founded by Dakang Pasture Farming Co.,Ltd.,and Silicon Paradise.The study is primarily exploring the causes,operating model and related risk of the M&A fund.Then,event research method,financial index research method and EVA index evaluation method are used to evaluate the impact for Dakang Pasture Farming Co.,Ltd.,‘s merger performance based on the establishment of M&A funds and the acquisitions from short-term and long-term.This paper give the conclusion that the establishment of the M&A fund and acquisitions based on the M&A fund both have positive impact on the performance of listed companies from short and long term.However,the current “PE+ listed compan y” model still has a series of problem.This paper concludes and gives relevant suggestion.