The Performance Evaluation Of M&A Based On The Balanced Scorecard

2008 was a major turning point for the Chinese dairy industry enterprises.After the"melamine" scandal,the dairy industry was greatly affected.Domestic brands began to lose their customers dramatically,and imported dairy products started to take over the domestic market;At the same time,the demand for dairy products in China continues to grow.Thus,the state introduced a new policy to encourage the reorganization and integration of dairy enterprises,as a result,the number of M&A cases among dairy companies began to rise,the scale and the volume of transactions also increased.However,the ultimate goal of M&A is to achieve strategic cooperation and integration between M&A parties,that is,to maximize benefits and improve business performance and market share.Therefore,it is necessary to find the most applicable method to assess the performance of these merger cases to give the most accurate results.The methods in past have been focused on the financial aspects for comparative analysis of merger cases,which is the most widely used and earliest found system.However,simply using financial indicators for analysis could lead to partial and incomplete conclusions.Furthermore,to assess the performance of merger cases,the results should be as accurate and comprehensive as possible,we must pay more attention to the role of non-financial indicators in this process.Therefore,the idea of this dissertation is to establish a system that consists of financial as well as non-financial indicators.Based on the idea of the Balanced Scorecard,this paper will analyze and discuss the selected case,in order to integrate the merger case from multiple perspectives such as finance and strategy.And then evaluate and analyze the performance of the merger,in order to come to relatively comprehensive and accurate conclusions,thus make some recommendations.And use the results of this dissertation as a basis to elicit a broader range of applications,not just for individual cases,to evaluate the long-term effects of mergers and acquisitions cases,and hopefully to provide the companies with an expansion strategy for development with more effective assessment.Mengniu's acquisition of Yashily is one of the most closely watched Chinese merger cases of dairy industry in 2013.This case drew so much attention for the phenomenon it caused on transaction level and brand level.It was also a merger of industry top enterprises and had deep impacts.Mengniu took over Yashily after three years of initial integration and achieved initial success.During this period,it experienced many twists and turns.This article intends to use professional evaluation methods to measure the activities of Mengniu and Yashily's merger and test the effect of its integration.This merger case study in the dairy industry will be conducted in the hope of providing follow-up experience.This paper selected Mengniu's acquisition of Yashily's case.While using related financial indicators,it also selected balanced scorecard theory to establish a balanced scorecard evaluation system to measure the company's performance after the merger.From the evaluation of Mengniu's acquisition of Yashily's case,through a multi-perspective analysis of Mengniu's sails performance and operating process,then draw a clear conclusion with a system which is relatively more effective and more reasonable.Our purpose is to measure the synergy and performance of M&A,and in hopes that the system can be applied to the studies of merger cases' performance of peer companies.