The Analysis Of Motivation And Performance Of Biostime Overseas Acquisition Of Swisse

M&A is a channel for an enterprise to carry out capital strategy operation,gain core competitiveness and achieve strategic development goals.Through mergers and acquisitions,enterprises' resources are optimized and allocated,economic benefits are improved,market share is increased,and the role of reducing costs and spreading risks can be achieved.Since the 1990 s,with the development of economic globalization,more and more enterprises in China have stepped onto the international stage through their overseas expansion through overseas m&a Chinese enterprises are increasingly active in the overseas m&a market,and the volume of transactions and the transaction amount have been rapidly increased sharply.In 2015,there was an oversupply in the milk powder industry.Under the impact of cross-border e-commerce and overseas online shopping,the dairy industry was facing a bottleneck.In this market environment,dairy companies are looking for a breakthrough to get out of the dilemma.And the health care products industry,which is closely related to the milk powder industry and is one of the hot topics,has become their choice.The dairy industry has developed into the health care products industry through mergers and acquisitions.However,m&a does not necessarily lead to good growth.Merger and acquisition has two sides.The success of the merger and acquisition will have a positive effect on the enterprise,it can promote the optimal allocation of resources and enhance the overall competitiveness of the enterprise.If the merger and acquisition fails,enterprises not only fail to achieve better development,but also make inefficient use of resources and even affect the development of enterprises.Whether a company's mergers and acquisitions bring value to them can be reflected in its m&a performance.Performance is an important indicator for evaluating a company's good changes.The performance appraisal can reflect whether the merger and acquisition enterprises meet the development goals,and whether the business operation is beneficial to the major shareholders.The article adopts a method of combination of literature analysis and case analysis.The literature analysis method is used in describing basic theories.The relevant documents are mainly from well-known domestic and foreign databases,such as Chinese Journal Full-text Database,Wind and the database of CSMAR.A large amount of data and literature are collected,and the domestic and foreign theoretical literature on overseas mergers and acquisitions are combed.This paper introduces the efficiency theory,market forces theory and agency theory.Then the case analysis method is used to consider the case of Biostime.The characteristics,motivation and performance of this m&a are analyzed in depth,the paper use charts to show the changes in business performance of the Biostime and shareholder wealth changes intuitively,and puts forward the influence factors of m&a performance.Finally,Combination of the preceding theory and case analysis results,the author draws the conclusions of this study and the implications for overseas m&a of other enterprises.This study found the main motivations that merger and acquisition Swisse.It includes the advantages of Swisse brand,the advantages of both the integration of resources into the international market and the need to ease the pressure on the market competition in the domestic milk powder industry.In addition,China has relaxed the entry threshold of health care products,it promoted the implementation of the merger.In terms of performance,It was a merger which has high premium and high debt ratio.However,after the acquisition,Swisse contributed a large amount of income to Biostime,and the revenue growth rate and net profit growth rate of main businesses were greatly improved.The brand effect enhances the popularity of the symbiosis,and also improves the competitiveness of the Biostime,the impact of short-term market performance also favors the good direction.Therefore,this paper believes that the positive impact of this acquisition on the merger is more obvious.In addition,through the study of this case,this article tries hard to find a reference for Chinese enterprises to achieve overseas mergers and acquisitions,hoping to give some inspiration to the successful overseas mergers and acquisitions.This article draws the following enlightenment: First,the national policy has a guiding effect on the overseas mergers and acquisitions of enterprises,and enterprises should make active use of the policies of our country and the host country to complete the overseas mergers and acquisitions.Second,enterprises should adapt to the development trend of the industry to actively adjust and transform.Third,the proper payment method is one of the favorable conditions for successful overseas mergers and acquisitions.Fourth,the effective integration after the merger is the guarantee for the subsequent development of the enterprise.