Study On The Serial Mergers And Acquisitions Of NF Seed Company

This study is based on the following case,the NF seed company growed from three consecutive years of losses from 2007-2009 delisting company to become a 3in1 seed and pesticide and fertilizer agricultural integration platform which is the biggest wheat seed supplier,the third biggest maize seed supplier and the biggest herbicide supplier in China,on the implementation in 2011-2014 serial mergers and acquisitions in the background,strategy planning,the transaction structure and the integration of performance for in-depth analysis summed up the expansion mode of successive mergers of the NF seed company.This study is based on the following practical background,in the face of multinational seed giants quickly occupied the Chinese seed market,the state in order to ensure the food security as the starting point,crop seed industry as a national strategic,fundamental core industries.In order to improve the industry concentration,to form a powerful transnational seed industry group,the Council and the Ministry of agriculture posting a series of release encourage seed enterprise merger and reorganization of the signal.Temporarily,hybrid rice,hybrid maize seed enterprises become the meat and potatoes in the capital market,transaction price is rising,the target company high premium situation on was eager to be involved in the seed of the NF seed company is very unfavorable.Secondly,seed enterprise core competitiveness lies in the talents,the variety rights and the channels,designing M&A transaction structure should ensure that the core competitiveness of enterprises in the target company.At the same time,serial M&As risk in mergers and acquisitions will lead to funding constraints,and even lead to capital chain rupture leading to bankrupt enterprises,capital turnover on the implementation of mergers and acquisitions and expansion strategy of enterprises is very important.The result of this study revealed the NF seed company started M&As in wheat as breakthrough point,continuous mergers cross-regional,crop species differences and strong core competitiveness of small and medium-sized seed of leading enterprises in the region to promote the expansion of the company,choose to acquire part of the shares of the target company and holding in the win-win transaction structure mainly,reduce agency cost and the difficulty of integrating.After the acquisition of operating results of the company to enhance the performance of financing,capital liquidity sufficient to enable the company to further improve the performance of M&As.In terms of cash flow,NF seed company using capital market financing,the issuance of shares,to guarantee the fund sources.In addition,the NF seed company to strengthen operating cash management,speed up inventory,net cash from operating activities increased significantly.The NF seed company's mature operation in the capital market and the fund circulation model of benign effects on other seed enterprises to mergers and acquisitions.After NF seed company serial M&As to form the 3in1 seed and pesticide and fertilizer agricultural integration platform,the scale effect is becoming increased apparently.Reducing the production cost and transportation cost,forming the advantage of low cost,to ensure that the enterprise's own margins.The NF seed company merger integration and management mode,to provide a reference example for other industry peers.