Research On The Synergy Effect Of Continuous M & A Of Seed Industry Enterprises

Seed industry is the starting point of agricultural production,and seed enterprises are the main body of seed industry.The development of seed enterprises not only affects farmers’ income,but also affects national food security and international competitiveness.In the increasingly fierce market competition,M & A,as an effective means of extensive expansion,has become a good way for seed enterprises to grow and improve efficiency.In recent years,the number of M & A in China’s seed industry is increasing,and some enterprises even have the trend of continuous M & A.the phenomenon and performance of continuous M & A of seed enterprises have gradually become the focus of M & a research.Therefore,it is very important to comprehensively evaluate the synergy effect of continuous M & A of seed industry enterprises.Taking Fengle Seed Industry,a leading domestic seed industry enterprise,as the research object,this paper carries out the research on the continuous M & A of seed industry enterprises.Combined with the relevant theories of synergy,using the methods of comparative analysis,case analysis and literature research,firstly,it summarizes the current situation of industry M & A and combs the continuous M & A events of Fengle Seed Industry;Secondly,based on the financial data of Fengle Seed Industry in recent eight years,this paper attempts to build a "3 + 2" model synergy evaluation index system,including three financial index dimensions: Operation synergy,management synergy,financial synergy and two non-financial index dimensions: technical synergy and strategic synergy,and specifically analyzes the realization of the synergy of continuous M & A of Fengle Seed Industry;Thirdly,the entropy method is used to calculate the weight of each index and the comprehensive score of each year to comprehensively evaluate the synergy effect;Finally,it puts forward relevant suggestions for the defects existing in its M & A.Through case analysis,this paper draws the following conclusions: first,Fengle Seed Industry initiated continuous M & A activities based on the government’s policy guidance,expanding scale and increasing market share,improving R & D capacity and acquiring new seed technologies;Second,the realization of synergy in all dimensions of Fengle Seed Industry is different,but on the whole,it has achieved positive synergy.Continuous M & A is an important measure to achieve the strategic objectives of enterprises.Enterprises should pay attention to adjusting the capital structure,broadening financing channels,increasing R & D investment after M & A,strengthening technological innovation,doing a good job in follow-up integration and making full use of various resources.The main contribution of this paper is to supplement the lack of case study of continuous M & A in seed industry,and provide some reference for enterprises in the same industry who want to achieve strategic objectives through M & A.