Analysis Of M&A Performance Of Dairy Enterprises Based On Synergies

With the development of dairy industry and its special regional restrictions,it is difficult for Chinese dairy enterprises to break through the original limitations to achieve the purpose of expansion.Therefore,more and more dairy enterprises choose to achieve technological breakthrough,regional breakthrough and management improvement through mergers and acquisitions,so as to achieve the business expansion scale,improve operating income,develop scope economy,produce breakthrough growth and other business purposes.At the same time,as our country pays more and more attention to the development of dairy industry from the perspective of politics,economy,people’s livelihood,its products affect the health problem of our people to a great extent,so the merger and acquisition of dairy enterprises has become one of the focus of the academic circle.For this reason,more and more scholars study the performance changes of enterprises after M&A,and through the M&A performance study of previous cases of dairy enterprises,they hope to provide academic help for the future M&A of dairy enterprises,which is conducive to the M&A expansion and development of the whole dairy industry.In this paper,we choose Mengniu Dairy merger and acquisition of Milkground as the case study object.Among them,Mengniu has the second largest dairy producer and Milkground has the first place in our cheese market.The combination of both can be described as strong combination and representative.This case study will also have reference significance for the case study of dairy merger and acquisition.In this paper,synergy effect is taken as the analysis perspective of M&A performance.Firstly,a basic understanding of the case is formed through the analysis of M&A background,motivation and other aspects.Secondly,17 financial indicators are selected according to the operation,management and finance of synergy effect to build a comprehensive evaluation system of M&A performance.Calculate the comprehensive evaluation value,and finally use the evaluation value to draw the corresponding conclusions and suggestions on the success of the merger.After a series of calculations and analysis of the data related to the merger,this paper finally concludes that the merger has synergistic effect on the whole.Separately,among the financial synergies,the solvency has been significantly improved.Secondly,the research and development and advertising investment of Milkground has produced favorable management synergies for Mengniu,while the operating synergies are relatively less obvious,and more objective results can be obtained only after longer observation and analysis.