New Hope Dairy’s Continuous M&A Drivers And Performance Analysis

In the face of the changing capital market wave,every enterprise grasps the straw for survival and development.In China,with the development of the global economy,the number of enterprises in China continues to be large,the industry is becoming increasingly concentrated,in order to stand out among many enterprises,for enterprises,the transformation of economic structure is the key for enterprises to stand out in the capital market,and the key to enhance the competitiveness of enterprises.According to statistics,the number of mergers and acquisitions in China reached 12,790 in 2021.Corporate mergers and acquisitions are not only limited to domestic,but also staged invisible gunsmoke in the international arena.In a constantly competitive industry,a large number of continuous mergers and acquisitions can quickly obtain scale effects for an enterprise in a short period of time,and are regarded by some enterprises as an important means to enhance corporate value.But for enterprises,continuous mergers and acquisitions are a double-edged sword.New Hope Dairy is a very typical enterprise that develops and expands itself through continuous mergers and acquisitions,in the face of the surging capital market,New Hope Dairy should make a new expression of the market environment,New Hope Dairy based on the current market analysis,through continuous mergers and acquisitions,continue to develop itself,forming scale effects.This article explains three mergers and acquisitions since the listing of New Hope Dairy in 2019.Firstly,the problems existing in New Hope Dairy before listing were analyzed,and it was found that there were mainly problems to be improved in three aspects: milk supply,market distribution range and market share,and after listing,New Hope Dairy chose to acquire three enterprises in a relatively short period of time:Modern Dairy,Ningxia Huanmei and Chongqing New Niu Hanhong.This paper analyzes the motives of the three mergers and acquisitions,and analyzes the impact of New Hope Dairy on the performance of enterprises after successive mergers and acquisitions by using the event research method and factor analysis method,and finds that the market effect produced by the three M&A events is not obvious,that is,the successive M&A events do not bring significant market effects to New Hope Dairy.Finally,through the three events and combined with New Hope Dairy’s own situation,he put forward suggestions to attach importance to enterprise integration,avoid blind expansion,and reasonably choose payment methods.