The Research On Value Creation Of Tsingtao Beer Series M&A

Since 2006,China has used Mergers and Acquisitions(M&A)as an important means to adjust the economic structure and optimize resource allocation.M&A has played a pivotal role in the development of enterprises.However,M&A will not succeed every single time,and there are many precedents of failure.Many companies want to create value for themselves through M&A.Academically,most research was conducted on whether a single M&A could create value for the enterprise,or on a certain process of M&A,such as preparation activities,summary of subsequent integration,or on singular study of some factors related to M&A value creation.However,this research is insufficient on the mechanism of value creation.This article aims to discover how Tsingtao Brewery creates value through a series of M&A activities,and hopes to discover the mechanism of Tsingtao Brewery's M&A value creation through research and provide support for M&A activities for other companies.Based on the synergy effect and value creation theory,this article first briefly introduces the case,sorts out the M&A process and program elements of Tsingtao Brewery,and then organizes and analyzes the value creation mechanism of Tsingtao Brewery serial M&A.Effective M&A integration is required to accomplish synergy effect and to create corresponding value.The research results of this paper are as follows:First,post-merger integration is the key to value creation by M&A.Good integration measures can produce synergies and enhance the value of M&A,while lack of subsequent integration or imperfect integration will destroy the value created by mergers in the long run.Secondly,enterprises can obtain the "pearl necklace effect" through series of M&A.In the process of series of mergers and acquisitions,the operating capacity and the acquiring ability influence each other,thereby creating more value.Finally,companies must always have and maintain their core competitiveness,because they cannot obtain all the capabilities through serial M&A.To prevent the risks that serial M&A may bring,they must pay attention to their own cultivation and promotion.