Study On The Performance Of M&A Of KD Dairy Acquisition JE Dairy From The Perspective Of Synergistic Effect

With the development of the economy,the development of enterprises is also growing,and M&A is gradually favored by enterprise managers as a way to spend less time and achieve enterprise expansion at a lower cost.In recent years,it has been favored by Chinese dairy products.Due to the sluggish performance of the industry market,fierce competition within the industry and the impact of national macro policies,the number of mergers and acquisitions in China’s dairy industry is gradually increasing,and the dairy industry is in a period of high tide of mergers and acquisitions.The dairy industry intends to expand market share through mergers and acquisitions activities,expand sales channels,improve the industrial chain,and increase production capacity.Improve your business performance.However,the M&A activities in the dairy industry in recent years have not been successful in all mergers and acquisitions,and whether synergies can be achieved by mergers and acquisitions is a key factor in the success of mergers and acquisitions.Therefore,the objective evaluation of the synergy effect of mergers and acquisitions has not only theoretical significance,but also has important practical significance.This paper first expounds the research purpose,significance,background and method of the article and reviews related literatures.Secondly,it introduces the concept of mergers and acquisitions,synergy effect and the motivation theory of mergers and acquisitions;then briefly states the overview of mergers and acquisitions,analyzes the motivation of mergers and acquisitions,and finds Achieving business synergy,management synergy,financial synergy,and poor business performance of JE Dairy are the main drivers of KD Dairy’s acquisition of JE Dairy.Then,the event analysis method,the financial index method and the EVA method are analyzed and compared,and the analysis method combining the financial index method and the EVA method is selected.A performance evaluation system was established.Based on the financial indicator method,the synergy effect,management synergy effect and financial synergy effect of KD Dairy were analyzed and the second and third financial indicators were determined.Finally,the EVA method was used for verification analysis.After calculation and analysis,it is found that each financial indicator basically shows a trend of positive growth after the merger.And after the merger,the EVA values are positive and rose sharply in 2017.It is concluded tha the merger has basically achieved synergy and increased shareholder value and improved the performance of KD Dairy.Finally,according to the problems found in the case analysis,KD Dairy proposed to improve product quality,enrich sales channels,expand sales scope,and put forward clear corporate development strategies,blindly mergers and acquisitions,and focus on resource integration after mergers and acquisitions for other dairy companies.