Research On The Influencing Factors Of Strategic Merger Mode In Dairy Companies

Nowadays,the frequent food safety problems in domestic dairy enterprises have seriously affected consumers ’trust in domestic dairy products.In order to ensure the safety of dairy products,the state has issued various policies to rectify industry norms,guide dairy enterprises to implement strong alliance,merger and reorganization,improve industrial concentration,and promote the integration of upstream and downstream enterprises in the industrial chain.Driven by national policy and market,dairy enterprises gradually enter the mature stage to launch frequent strategic mergers and acquisitions.But in the process of strategic M&A,different enterprises choose different M&A modes.Current strategic M&A models are divided into strategic horizontal M&A,strategic vertical M&A and strategic mixed M&A.Strategic horizontal M&A refers to the M&A between enterprises engaged in the same or similar business in the same industry;strategic vertical M&A refers to the M&A between enterprises in the same industry in the upstream and downstream;strategic mixed M&A.That is,mergers and acquisitions of enterprises in totally unrelated industries.What factors should be taken into account when dairy enterprises choose the strategic M&A mode,how do these factors affect the M&A mode,and how will the performance of dairy enterprises differ under different strategic M&A modes?Based on this background and these doubts,this paper makes a strategic merger of dairy enterprises.In order to guide the current decision-making of M&A of dairy enterprises scientifically and promote the healthy development of enterprises,the M&A behavior in M&A is studied and the performance of enterprises after M&A is further evaluated.In this paper,based on the definition and theoretical elaboration of the concept of strategic merger and acquisition,the relevant literature on the factors influencing the selection of merger and acquisition modes in strategic merger and acquisition is sorted out.Taking the merger and acquisition events of dairy enterprises in China from 2010 to 2017 as the research object,the causes of merger and acquisition,the life cycle of enterprises and the level of asset specificity are discussed.In the four aspects of enterprise characteristics,this paper makes descriptive analysis and regression analysis on the influencing factors of strategic M&A mode of dairy enterprises by using multiple logit models.The results show that strategic horizontal mergers and acquisitions mostly focus on market-seeking motivation,strategic vertical mergers and acquisitions mostly focus on resource-seeking motivation and technology-seeking motivation,while strategic mixed mergers and acquisitions mostly focus on strategic Assets-Seeking motivation.In the growth period of enterprises,strategic horizontal mergers and acquisitions are mainly adopted,and in the mature period,warfare occurs.Strategic horizontal mergers and acquisitions are combined with vertical mergers and acquisitions.In recession period,it is easier to choose strategic mixed mergers and acquisitions for diversified production;the higher the level of asset specificity of target enterprises,the easier the enterprises to adopt strategic vertical mergers and acquisitions;the easier the state-owned enterprises to use strategic vertical mergers and acquisitions to obtain resources and technology,while the private enterprises are easier to carry out.Strategic horizontal mergers and acquisitions,mixed mergers and acquisitions,expand the market;larger enterprises are more likely to be mergers and acquisitions due to resources and market motivation,that is,they are more likely to adopt strategic horizontal mergers and acquisitions and vertical mergers and acquisitions mode;the stronger the financing capacity of enterprises,the easier it is for enterprises to adopt strategic vertical mergers and acquisitions.In addition,in the three M&A cases of M&A modes,this paper chooses three typical cases of Mengniu ’s M&A of Yashili,Mengniu’s M&A of Xiandaimuye and Fuxing’s M&A of Sanyuan Shares to verify the selection mechanism,and uses the event study method to analyze the M&A performance.The conclusion shows that the performance benefit of strategic horizontal M&A is the best.The performance of strategic vertical M&A and strategic mixed M&A is slightly lower than that of strategic vertical M&A.In this paper,the resource-based theory,industrial organization theory and scale economy theory are introduced into the study of strategic M&A at the same time,and the impact degree and mechanism of the four factors on the selection of strategic M&A mode of dairy enterprises are analyzed,including the causes of M&A,the life cycle of enterprises,the level of asset specificity and the characteristics of enterprises,so as to correctly carry out the research for dairy enterprises.Strategic positioning and selection of appropriate M&A strategy decision-making provide theoretical support.At the same time,the influence of single factor and interaction factor on the choice of M&A mode is considered in detail,which more clearly reflects the change of M&A behavior of dairy enterprises in strategic M&A.Selecting typical cases to study,we can make a detailed comparative study of the whole M&A behavior and the performance after M&A.This is the value of this study.