Analysis On Performance Of M&A Overseas Enterprises In China's Food Industry

Under the influence of the world economic situation,the division of labor among companies in various countries is becoming clearer,international market competition is in full swing,and global resources are being optimized in constant deployment.In order to take an absolute advantage in the international market,companies from all over the world have access to high-quality raw materials,advanced technology,cheap labor,and huge sales channels in their countries to reduce their production costs and gain higher profits.In the early stages of mergers and acquisitions,China's foreign investment was mainly distributed in the fields of energy,real estate,finance,and services.Today,large companies have started to attack the food industry,such as: COFCO,Shuanghui Group,and Mengniu Dairy to expand production scale.To stabilize the source of raw materials and improve technological innovation,we are actively expanding overseas markets and introducing advanced production management technologies and high-quality human resources.At present,more and more food companies in China are beginning to regard overseas M&As as the goal of business expansion.However,from the perspective of M&A cases over the years,there are not many successful M&A cases for food companies.Therefore,this article takes the case of Kerr,the largest health care product company in North America,acquired by West King Foods in 2016 as an example to conduct an in-depth analysis of the overseas mergers and acquisitions of Chinese food companies.The analysis mainly focuses on the analysis of Xiwang Food's overseas merger and acquisition motives,the analysis of the merger and acquisition process,and the financing plan.The introduction,the performance analysis before and after mergers and acquisitions and other aspects of the starting point for the discussion,and finally through the West King Food Merger acquisition of Kerr case to draw inspiration and for China's food industry mergers and acquisitions of overseas companies put forward constructive comments.The article is divided into five chapters to discuss the analysis.Chapter One Introduction.The paper focuses on the background,significance of the research,the research results and research status at home and abroad,the main methods of research and the framework of the thesis.Chapter 2,Overview of West King Food Merger and Kerr.Firstly,it mainly introduces the company profiles of the M&A parties.Secondly,it introduces the M&A process and the unique use of funds during the M&A.Finally,it analyzes the motivation of the acquisition of Kerr by Xiwang Food.In the third chapter,we choose the financial index method to analyze Kerr's performance analysis of Xiwang Food,mainly focusing on Xiwang Food's ability to repay the debt before and after the merger,the ability to operate and develop,the ability to obtain profit,and the ability to develop comprehensively.In the fourth chapter,because the selection of indicators in the traditional financial index method is based on the disclosure data of the financial statements,there is a certain error from the actual performance results.This chapter mainly aims to make up for the shortcomings of the traditional financial indicators and introduce the EVA performance analysis method.EVA's calculation model and calculation process,followed by adjustment of each index to get EVA value,and finally evaluate the calculation results.Chapter 5,Revelations and Suggestions,summarizes the revelation of successful mergers and acquisitions from case studies and suggests suggestions for overseas mergers and acquisitions in the food industry.