Research On The Motivation And Performance Of Longping Hi-tech’s Merger And Acquisition Of Lantron Seed Industry

As a big agricultural country with a long history,China’s agriculture not only plays an important role in the whole national economy,but also has always been a key field related to the people’s livelihood in China.As one of the most basic industries in the field of agriculture,the development of seed industry is not only closely related to the economic income of farmers,but also related to the food security of the country.With the national attention to "agriculture,rural areas and farmers" and the promotion of agricultural industrial structure adjustment,competition among seed industry enterprises is becoming increasingly fierce.Mergers and acquisitions can not only expand enterprise scale,adjust enterprise production structure,but also reduce production costs and promote the realization of enterprise strategic goals.Therefore,mergers and acquisitions are important means for seed enterprises to improve competitiveness and achieve long-term development.Seeds in recent years the number of companies involved in mergers and acquisitions is rising,but not all of the m&a can bring positive effect to the enterprise,so the m&a brings to the enterprise performance,for other m&a companies want to implement the good reference significance and reference value,can prevent the failure of mergers and acquisitions in the certain degree.In this thesis,Longping High-tech,a representative enterprise in China’s seed industry,is taken as the research object,and the motivation of Longping High-tech’s merger and acquisition of Lianchuang Seed industry and the impact of merger and acquisition on enterprise performance are deeply studied.This thesis first analyzes the internal and external motivations of the mergers and the process of the review.Then use the event study method to evaluate the market performance of m&a.This thesis constructs the performance evaluation model of m&a by catastrophe progression method and studies the comprehensive performance of m&a.Finally,some suggestions are put forward based on the research conclusions.This thesis studies the market performance,financial performance,innovation performance and social performance of M&A respectively.The research results show that in the short term,the merger has significantly improved the company’s market performance,but the performance of financial performance is not very good.In the long run,the acquisition accelerates Longping High-tech’s layout in the domestic corn seed industry,rapidly increases its market share,effectively improves the company’s sustainable profitability and shareholder return,and the company’s financial performance,innovation performance and social performance have a strong momentum of development.In general,longping High-tech’s acquisition of Lianchuang seed industry is beneficial to enrich the company’s income structure,strengthen the main business,and form a two-wheel drive with its own rice business,further consolidate its leading position in seed industry,and inject new vitality into the company’s future development.