Analysis Of The Financial Performance Of Shuanghui International's Acquisition Of Smith Field

With the continuous development of the domestic economy,some industries in the domestic market begin to have excess capacity,and the market scale growth rate slows down.As a result,the competition between enterprises in the same industry becomes increasingly fierce.In order to expand and enhance competitiveness,enterprises can achieve this through both internal accumulation of wealth and external expansion.However,the internal accumulation of enterprises is slow,which cannot meet the requirements of enterprises to quickly improve their competitiveness.External expansion is far more efficient than internal accumulation.Through external expansion,enterprises can rapidly expand their income and asset size,enhance their competitiveness,improve their profitability and thus enhance their value.M&A is the main manifestation of external expansion.While the income and asset size of the enterprise increase,the operation risk of the enterprise also increases sharply.It has higher requirements on the capital strength and integration ability of the acquirer,as well as the selection of the subject matter of the M&A.The success of post-merger integration determines the success of the M&A.If the merger fails,it could be a fatal blow to the acquirer.There are many cases of M&A failure at home and abroad and few successful cases.This paper selects the representative case of shuanghui international's merger and acquisition of smith field for study.Shuanghui international and smith field are both in the pork food industry,with many similarities in products and production and operation,while the characteristics of the value chain of the pork food industry in China and the United States are different.This paper compares the different characteristics of the value chain of pork food industry in China and the United States.Through the analysis of financial index analysis,dupont analysis and EVA economic added value analysis,it analyzes the financial index status and financial quality before and after shuanghui international merger and acquisition,and draws the conclusion of this paper.On this basis,the key factors of M&A success are summarized,hoping to provide reference for other Chinese enterprises' value chain M&A activities.In a view of the fact that this paper selects the case of Shuang hui international's merger and acquisition of smith field,Shuang hui international's industrial status and characteristics have their particularities,the conclusion of this paper may be uncertain for other enterprises.Due to the confidentiality of the internal information of shuanghui international,the analysis of shuanghui international's M&A motivation and integration activities after the merger may not be comprehensive.The research conclusions of this paper mainly rely on the research and analysis of shuanghui international open financial data.The research conclusions are influenced by the authenticity and objectivity of shuanghui international open financial data.