The Case Study On Agricultural Listed Companies M&A Performance

A famous American economist George Stigler,have won the Nobel Prize in economics,once said :“ According to development history of the top enterprises all around the world,they do not rely on internal accumulation to grow up,but develop themselves through the merger and acquisition(M&A)of a certain degree and a certain way ”.Obviously,M&A is an effective way to make enterprises stronger and larger.At present,domestic agriculture is in a key period of adjustment and transition of industiral structure.With arrival of the fifth global M&A waves,the resources intergration in all walks of life like a raging fire are carrying on.M&A events happened in agriculture sector are being more and more active and attract a wide attention from theory and practice field.Throughout the development and situation of agriculture enterprises in China,the features of agricultural listed companies include small quantity,little scale,week competitiveness,uneven distribution of region and industry,polarization and conversion-agriculture,which both lead much lower business performance compared with market average level for a long time.On this background,how to expand and integrate the industry chain through M&A and how to find out real development opportunity and determine sustainable development strategy,is a problem and challenge that can not be ignored for agricultural listed companies.This article adopts case study method combined with normative research method,analyses the performance change after ZhengBangKeJi acquires ZhengBangShengHua from multiple points of view and different level.On the one hand,based on efficiency theory,the artice takes a longitudinally analysis about ZhengBangKeJi's performance influenced by the acquisition according to accounting-based method.In consequence,ZhengBangKeJi achieves obvious operating,managment and financial synergy effect through the acquisition,which still have continued after closing.On the other hand,adopting laterally comparative research in industry,the article discovers that ZhengBangKeJi's M&A strategy enhances its market share and industry competitiveness.Which not only enriches the previous study in agricultural M&A field,but also makes a beneficial attempt to the transformation and development of agricultural enterprises.Though the above analysis,the article summarizes some successful experiences and existing problems from this acquisition.Based on that,we can provide some valuable suggestions to agricultural acquisition,including: from microscopic visual angle,companies should clarify acquisition motive and select appropriate target before the M&A takes place,in addition,companies also need pay more attention to the M&A integration and focus on the new risks after the M&A takes place.from macroscopic visual angle,companies should keep a watchful eye on macro policy and capital market,so as to guarantee maximization of M&A utility.