Study On The Performance Of Continuous M&A In Dairy Industry

With the development of China's economy,it has become an inevitable trend for enterprises to become bigger and stronger,the merger and reorganization is a shortcut to this aim.Between 2010 and 2016,the number and amount of mergers and acquisitions announced by the domestic company have increased.When the amount is arising,the frequency of mergers and acquisitions is also increasing,which leads to the trend of continuous mergers and acquisitions in some companies.In recent years,the dairy products enterprise developed rapidly after the melamine incident,the focus of competition of those companies have become how to guarantee milk,dairy products production process,improve product brand image,expand sales channels.And the policies of the state council would like to make the ten companies occupy more than 80% market share in 2018.Under this background,the merger and restructuring of dairy industry is accelerating,also presented the continuous trend.However,it is not clear how the continuous merger of dairy company affects the company's performance,and it has some theoretical and practical meaning for the performance research of continuous m&a in the dairy industry.This paper combines normative research and case analysis,taking G company as an example to study the improvement of performance after continuous m&a of the dairy industry.First of all,through reading a large number of literature,this article defines the concept of mergers and acquisitions,continuous acquisition,and m&a performance.expounds the continuous merger related theoretical basis,as well as build evaluation system of continuous m&a performance;Secondly,it analyzes the industry status.And summarizing the reasons for its merger and acquisition.Third,through the evaluation system,analyzing G company's market reaction with event study after the merger announcement,evaluating the long-term financial performance with financial index method and principal component analysis.Through analysis,it shows that the continuous acquisition of G company does not necessarily improve its performance,and it summarizes the following four Suggestions and enlightenment: attaching great importance to the domestic market,focusing on the domestic dairy industry laws and regulations,making a reasonable acquisition strategy;strengthening the integration,promoting efficiency of management.This article can provide reference for other dairy enterprises when they make continuous m&a,and it is also conducive to the integration.