Analysis On Financial Synergy Effect Of Enterprise Mergers And Acquisitions

With the rapid development of market economy,mergers and acquisitions of enterprises have gradually emerged.Mergers and acquisitions of enterprises are the inevitable outcome of the development of market economy to maturity,and belong to the re-integration of social resources.A successful merger and acquisition has a great positive effect on enterprises.The case of Mengniu's merger and acquisition of Yashili is the most influential merger and acquisition activity in dairy industry.The amount of M&A is huge,the scale is huge,and it is representative.However,whether the M&A is successful,the extent of financial synergy,and whether it can provide experience for future M&A activities in China's dairy industry need to be further explored.Based on the theory of M&A and financial synergy effect of M&A,this paper first analyses the motivation of M&A between Mengniu and Yashili,then combines the motivation of M&A and the development of Mengniu after M&A,separately from four aspects: capital operation efficiency,solvency,profitability and tax saving ability.The effect is analyzed concretely and comprehensively.Through the analysis,some shortcomings are found and corresponding suggestions are put forward.This merger and acquisition activity opened the door to the milk powder market for Mengniu and promoted its profitability.However,due to the high cost of the acquisition of Yashili and the single payment method,Mengniu has a high debt,resulting in a decline in the solvency of Mengniu and the efficiency of capital operation.At the end of the article,according to the analysis of the negative effects and existing problems brought about by this M&A activity in the previous articles,some suggestions are put forward for future M&A activities.The first is to strengthen the integration after M&A.Including the integration of human resources strategy,corporate culture,organization and business.The second is to choose the payment method reasonably.Thirdly,M&A should make a comprehensive evaluation of the target,not only the financial investigation of the target enterprise,but also the comprehensive evaluation of the target enterprise,so as to reduce the pricing risk brought by M&A activities and avoid paying excessive M&A costs for the M&A enterprises.