The Performance Analysis Of Leveraged Buyout By Bright Food (Group) Co.,Ltd

In 1980 s,leveraged buyout rose in the western developed countries represented by the United States,after decades of development,as an efficient mode of merger and acquisition,leveraged buyout increasingly came into maturity.The cases of "Ants to swallow an elephant" continue to be played in the West.Compared with the western developed countries,the leveraged buyout appears late in our country,February 2006 the Pacific Alliance Group successfully acquired Jiangsu Good-baby Group regarded as the beginning of China's leveraged buyout,and there is a certain difference between the leveraged buyout under the system environment with Chinese characteristics and the western market.The wave of leveraged buyout is gradually rising in our country,more and more companies begin to try "Small fish eats big fish".This thesis focuses on mode innovation of leveraged buyout and M&A performance of the Bright Food(Group)Co.purchased the Weetabix Food CO.,attempts to conduct a comprehensive analysis,helps to promote the development and innovation of our country and cross-border leveraged buyout market,and has positive significance for enriching the existing theory of leveraged buyout.This article takes the Bright Food(Group)Co.,Ltd acquired the Weetabix Food CO.as the research object,mainly from the acquisition background and process,financial performance of merger and acquisition and EVA(economic value added)performance to analyze,using methods like literature research,case analysis,comparative study,inductive analysis and so on,systematically and thoroughly analyzed and evaluated the impact of leveraged buyout from perspective of financial indicators and economic value added.Finally,based on the case analysis,some relevant enlightenments are obtained and some recommendations are put forward.The thesis selects the Bright Food(Group)Co.,Ltd leveraged buyout the Weetabix Food CO.as the case study,it comprises five components.The first chapter is the preface,which describes the background and significance of the topic,followed the research status of domestic and foreign related fields are reviewed,the research methods and ideas are introduced,and the framework of this paper is summarized.The second part is an overview of the theory,summarizes the concepts,characteristics and methods of leveraged buyout and M&A performance,and introduces some related theories to the case such as the efficiency theory,market power theory,information and signaling theory.The third part is case description,sketches the basic situation of the Bright Food(Group)Co.,Ltd and the Weetabix Food CO.,introduces the related background,acquisition mode and sources of funds of this acquisition etc.,of which the acquisition process is the focus of this part.The fourth part for performance analysis is the core content of this paper,a detailed M&A performance analysis of the Bright Food(Group)Co.,Ltd acquired the Weetabix Food CO.By comparing the calculated financial indicators as asset status,solvency,operational capability,profitability and EVA(economic value added)index and concrete analysis,combine with a large number of charts,and intuitively reflect the changes in the index,to find the final analysis of the impact of M&A on the performance of the company.The fifth part is the enlightenments and recommendations,summed up that leveraged buyout helps the company to achieve diversity,leveraged buyout can effectively solve the financing difficulties,leveraged buyout helps optimizing capital structure,and make recommendations for other companies to make similar leveraged buyouts in the future.With the growing open and maturity of our country's financial market,financial innovation constantly emerging,the ever increasing demands for enterprises,and relevant laws and regulations related to leveraged buyout keeping improved,the leveraged buyout cases are also on the rise.In this thesis,the development course of leveraged buyout is reviewed with the help of the case that the Bright Food(Group)Co.,Ltd acquired the Weetabix Food CO.,then analyzed the performance of mergers and acquisitions,and put forward relevant recommendations.However,due to select a single case to study,it is inevitable that some of the particularity of the case,and cannot form general and effective conclusions.I hope this study can provide useful references for the leveraged buyout,especially the cross-border M&A.