Research On M&A Performance Of China's Dairy Enterprises Cross-border

As a global economic development trend,world economic integration brings competitive challenges to our enterprises.At the same time,it also brings the historic opportunity to the world market.The comprehensive national strength of a country determines the right of international discourse,and the strength of the real economy determines the level of comprehensive national strength.The real economy is largely reflected in the number of powerful international companies.Cross-border M&A becomes an important way of joining the international market who can external expand quickly.Along with the executing of comprehensively deepening reform and growing improvement of economic strength,China's international economic status has been continuously improved.Directed by the basic policies of reform and opening to the outside and "bringing in" and "going out",China's enterprises have joined cross-border M&A actively.China's economy has entered a period of new normal especially in recent ten years.Since the economic growth edged down and the structure constantly upgraded,China's foreign capital output is increasing,M&A activities are becoming more and more active.China's dairy enterprises are also actively involved in M&A tide,prepared for international competition and carried out a series of cross-border activities.This can inject new vitality into “intelligent manufacturing in China”,and also provide reference for China dairy industry to become bigger and strongerFaced with cross-border M&A,there is no successful experience to draw on,money and enthusiasm are not enough.If China's dairy industry cross-border M&A want to go further,and to achieve greater success,we must enhance the related science research and maneuverability.We also need to provide theoretical and empirical support for the research.In 2010,Bright Dairy Corp completed a takeover of New Zealand Synlait Milk.This is the first time China dairy company's acquisition has been grown successfully.The study found that regardless of its development situation,motivation and procedure were highly typical and representative.Furthermore,its post-merger integration began to fall into place with a longer reference period.Therefore,we should carry out a deep and comprehensive research on this activities,in order to provide reference and guidance for the future of China's dairy enterprises cross-border M&A.This article mainly divides into five part.In the first part,the review explains the theoretical concept used in the article,combs the present theory,explicates the connotation and methods of M&A.Then it discusses the research background and value,and makes clear about the research content,the frame and method.In the second part,it introduced the status of both China's and global dairy industry situation and market structure.It also analyzes the status and characteristics of the dairy industry cross-border mergers and acquisitions,to make clear the market environment of Bright Dairy Corp.The third part is the case analysis with an introduction to the basis for the selection,the enterprises of the two sides,the motivation and the process of M&A,and the post-merger integration.Part Four analyzes the current performance.Selected 5 years annual report data,it analysis the changes of solvency,operating capacity,profitability and growth ability.According to case analysis and performance appraisal,the fifth part makes recommendations for enhancing performance from both the Chinese government and enterprise.At last,this paper reaches research conclusion.It has been five years since Bright Dairy Corp completed the takeover of Synlait Milk.Because of the long adjustment period and sluggish domestic dairy markets,the financial indices are not satisfied.In terms of target selection,negotiation,payment and post-merger integration,it is still a successful M&A.At the end of the article,it points out the deficiency and expectation.