The Case Study On Hainan State Farms Acquiring R1

Mergers and Acquisitions(“M&A”)can optimize the allocation of resources and effectively enhance the competitiveness.It is a way for enterprises to achieve their strategic goals for development and achieve leap-forward development.Since the 1980s,with the intensification of economic development and globalization,the M&A activities of the western developed countries led by the United States have been carried out in an all-round manner.The wave of M&A has involved all walks of life and has swept the world.After the 21st century,as China continued to increase its efforts in reform and opening up,social economy and enterprises achieved rapid development,and the corporate M&A market became increasingly active.The number of M&A and the amount of M&A increased significantly,becoming a new bright spot in the world economic development.Overseas M&A are extremely difficult corporate capital operations.Their implementation has high uncertainty,high cost,and high risk.After the implementation of overseas M&A,in accordance with the pre-merger expectation,there have been few cases in which the management level of the company has been greatly improved and the business performance has grown at a large proportion.Many overseas mergers and acquisitions have failed.The thesis takes the successful acquisition of R1 company in Singapore as a case study by Hainan Farming Co.,Ltd.and hopes to provide experience for Chinese companies in implementing overseas M&A.The study of the dissertation shows:Support from the government and policies is the basis for successful overseas M&A of state-owned enterprises;Clearly the purpose of acquisitions and reasonable selection of target companies is the key to successful M&A;It is necessary to rely on intermediaries,make feasibility analysis of M&A,and conduct risk prevention in advance;Selecting the M&A optimal path can reduce the cost of M&A and increase the probability of M&A success;We must fully trust the original team of the target company and avoid blindly promoting integration after M&A.