Bright Dairy M&A Performance Analysis

Mergers and Acquisitions(M&A)can not only expand the scale of enterprises,improve their core competitiveness,but also help to complete the adjustment and upgrading of industrial structure and the rational and effective allocation of resources.In recent years,China's economy is in the process of rapid development,and the competitive relationship between the same industry has intensified.With the proposal of "manufacturing a strong country 2025" and "One Belt One Road" strategy,M&A has become an inevitable trend of the future development of the company.The dairy manufacturing industry began to cross-border M&A late.The first overseas M&A case in China's dairy manufacturing industry was the acquisition of New Zealand's New Wright by Bright Dairy.It has been eight years since the completion of the merger,and the integration has been achieved.The in-depth study of the M&A performance of this case can provide reference for the future mergers and acquisitions of dairy manufacturing enterprises,which has great practical significance.The article first introduces the background and research significance of the research,the research status at home and abroad,the research content and research methods,points out the innovation of this paper,and defines the related concepts,combs the theoretical basis of the theoretical text and the evaluation method adopted by M&A.Then,in conjunction with the case of Bright Dairy's acquisition of New Wright,the company briefly introduces the merger and acquisition and then analyzes the motives of M&A.Then it analyzes the M&A performance from both short-term and long-term perspectives.In terms of short-term performance,investors are interested in this merger.The event held a optimistic attitude and affirmed the M&A results and the company's future development prospects.After the merger,the cumulative excess return rate of Bright Dairy is positive,which is significantly higher than before the merger.This fully demonstrates that the acquisition of New Wright has increased the shareholder wealth of Bright Dairy and enhanced shareholder value.In terms of long-term performance,after the merger,Bright Dairy's income in the normal temperature milk and milk powder sector soared,the M&A performance of the operation was relatively significant,and the company's profitability and growth ability were good;retaining some of the new Wright executives and R&D production team can be certain To a certain extent,improve the quality and efficiency of management;the solvency of Guangming Dairy after the merger has slightly decreased,but the indicators of all aspects are controlled within a reasonable range,still above the average of similar enterprises.Then analyze the shortcomings of the case analysis based on the data of the case analysis and give relevant suggestions.The article concludes that the acquisition of the new Wright in the Bright Dairy is successful in order to improve the M&A performance of related companies in China and provide empirical data.