A Case Study On The Financial Integration Of Yili Dairy’s Overseas M&A

The continuous innovation of science and technology has also led to increasingly fierce competition among enterprises.Mergers and acquisitions can optimize the allocation of corporate resources,adjust and transform corporate strategies,and optimize and improve the production capacity structure in a short period of time.Besides,since the reform and openness,our country’s economy has developed sharply,and the state has given greater and greater support to mergers and reorganizations.This decade is the golden decade of China’s M&A market,and M&A has seen exponential growth.The financial integration is a crucial part of the M&A process.By analyzing cases of financial integration after M&A,the risks of M&A can be lessened,while the success rate and quality can be enhancedThe thesis uses system theory,synergy theory,dissipative structure theory,and core competence theory as the theoretical basis,and combines the use of literature research methods on the basis of combing the motivations of mergers and acquisitions,the great significance of financial integration,content,and effect studies at home and abroad,case technique,comparing method and so on to study the overseas M&A case of Yili Dairy’s acquisition of New Zealand Westland Dairy.While presenting concepts of corporate M&A and financial integration,the main substance and methods related are explained.Then it illustrates evaluation criteria of the financial integration effect,which lays a concrete base for the detailed analysis of the financial integration effect analysis after Yili Dairy acquired Westland Dairy.When it comes to case introduction part,the fundamental condition of the M&A parties is first introduced.From the perspective of synergy and diversification,through the growth of the dairy industry,the policy environment,the strategic layout of the Yili dairy industry,and the crisis faced by the Westland dairy industry,etc.The motivation for Yili Dairy’s merger and acquisition.Then it detailed the context of Yili’s M&A Westland case,which is divided into the selection of M&A targets,the determination of M&A plan,M&A process and results,which fully and clearly show the before and after of the M&A event.Furthermore,the financial integration content of Yili’s acquisition of Westland Dairy has been analyzed in multiple aspects and dimensions.In terms of performance analysis,the two methods of financial and non-financial indicators are used to horizontally and vertically evaluate Yili’s performance before and after the merger from the five dimensions of debt repayment,profitability,operation,growth ability and market effect.Yili’s indicators are all good;established;The Z-score model shows that the financial risks before and after Yili M&A remain good,which reflects the effectiveness of financial integration.Finally,by summarizing the successful experience of Yili’s merger and acquisition financial integration,it put forward enlightenment from the aspects of focusing on the integration of financial personnel,improving the supply chain,and brand building,and made a full text summary and research outlook,hoping to use this successful case to provide financial integration for other companies with scientific guidance.