Study On M&A Behavior Of The Food Industry Based On The Extension Of Industry Chain

The development of the domestic food industry is still in the transition period.It is not only facing food safety risk and problems of low concentration,but also facing strategic development opportunity of rigid consumer demand growth and giant market space.Overall listing,industry mergers and acquisitions,backdoor listings,diversified patterns such as mergers and acquisitions fund promote the M&A market in terms of breadth and depth of development.The food enterprises extend the industry chain through mergers and acquisitions will be the trend of The Times.Leisure food consumption presents the trend of branding and many varieties due to the change of spending habits.The popularization of the Internet accelerated the development of e-commerce food enterprises.Brand equity and online channels will be the competitive edge of the industry.In the light of international experience,the food enterprises will realize the importance of extension of the industrial chain through mergers and acquisitions.In the next five to 10 years,the path model of epitaxial expansion through M&A will become a major strategic choice for leading enterprises and it will also change the industry competition pattern.In this background,this paper selected the first M&A case of leisure food enterprises-Haoxiangni Jujube Co.,Ltd.acquiring Haomusi food Co.,Ltd.to analyze M&A behavior of the food industry based on the extension of industry chain.The paper firstly analyzes the theory of motivation and effects of M&A behavior of the food industry based on the extension of industry chain.Secondly,this paper introduces the operating conditions and the M&A motivation of Haoxiangni Jujube Co.,Ltd.from the perspective of industry development and enterprise development.Thirdly,the paper analyzes the implementation path of the merger including the acquisition target,the price of the acquisition,the choice of payment method and the key events of the merger.Finally,the paper analyzes the synergistic effects of the acquisition behavior and market performance and financial performance using event study method and financial index analysis method to draw a conclusion.On the conclusion of this paper,short-term performance and long-term performance are both improved after the behavior of M&A.It illustrates that the leisure food enterprises can expand distribution channels and save transaction cost,through acquiring e-commerce food enterprises to achieve synergistic effects.It shows that food enterprises expanding industry chain through mergers and acquisitions is the trend of the industry development.