Performance Analysis Of Overseas Mergers And Acquisitions

The integration of the world economy has enabled various countries and regions to participate in the international division of labor and exchange in varying degrees,and has promoted the global allocation and optimization of resources.For China's dairy industry,global integration is also an opportunity and challenge.Many foreign-funded food groups in China take the form of equity joint ventures and self-construction to share in the dairy industry in China.Chinese food groups have also gone to abroad to seek higher development opportunities.Overseas mergers and acquisitions are one of the important ways for enterprises to expand internationally.The melamine incident in 2008 brought almost devastating blow to China's dairy industry.Seeking high-quality milk sources,establishing brand image and restoring market confidence have become the focus of work of many dairy enterprises.At the same time,the number of dairy enterprises in the domestic market is large,the competition is fierce,the concentration of the industry is rising,and the leading effect is more obvious.After M&A in the industry,a series of large-scale dairy enterprises will be formed,which will have the strength to go abroad for M&A.In the same year,the spread of the global financial crisis,the value of foreign assets generally shrank,and some overseas dairy manufacturing enterprises broke their capital chain,which objectively created opportunities for overseas M&A of dairy enterprises.However,the industry started late,although the rapid development,but the failure rate is higher.In view of the above considerations,Brightdairy Company,one of the leading dairy enterprises in China,merged New Zealand Synlait in 2010.This is the first successful overseas merger and acquisition in China's dairy industry.Through in-depth study of its merger and acquisition performance,it has a reference for China's dairy enterprises to cross-border merger and acquisition.The first chapter of this dissertation is the introduction,which includes the research background and significance,puts forward the concept of M&A performance,explains the research methods and research framework,and finally puts forward possible innovations and shortcomings.The second chapter is the theoretical basis and literature review.It explains the theoretical basis of overseas M&A,which has theoretical significance for the cause and performance evaluation of M&A.This dissertation summarizes and comments on the evaluation methods of performance and the influencing factors of overseas performance.The third chapter describes the evaluation index research of this dissertation.It combs the connotation,advantages and disadvantages of different evaluation methods of event research method,accounting index method and economic value added method,hoping to evaluate performance from different perspectives.The influencing factors of performance are analyzed from many aspects.Chapter IV is the focus of this paper.It introduces the current situation of domestic industry and international mergers and acquisitions,analyses the situation of both Brightdairy and Synlait mergers and acquisitions,and the whole process of mergers and acquisitions,including the process and the integration of influencing factors on performance.Different performance evaluation methods are used to conduct case analysis,and the conclusions of each method are drawn,and the overall evaluation is carried out.The fifth chapter is the last chapter to put forward the relevant recommendations of this article.This paper concludes that the successful overseas M&A is due to the opportunity created by the objective conditions of domestic and international markets,and the fierce competition in the domestic market,the bright need to seek new growth points.After the melamine incident,people's confidence crisis in food safety,especially domestic milk powder,urgently needs to strengthen brand building.Compared with the cost advantage of raw milk in the domestic market,the international market guides the dairy enterprises to internationalize.The financial crisis makes some enterprises face difficulties in operation and provides the target of acquisition.In terms of subjective factors,Brightdairy 's strategic planning points out the direction of development.Reasonable motivation of M&A does not blindly carry out overseas M&A.The incentive mechanism of the company rationally mobilizes the enthusiasm of the senior managers.Merger and acquisition valuation,reasonable choice of payment methods,select the appropriate advisory team for intermediary services.Merger and acquisition performance is good in both short-term and long-term results,indicating that the two sides play a synergistic role.In the process of merger and acquisition integration,we should fully guard against the adverse effects of political,financial,cultural and personnel factors on merger and acquisition,which is helpful to improve performance.