Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
Series Vol. 56 , 01 December 2023
Open
Access | Article
A Case Study of Bright Food’s Acquisition of GNC in 2011
* Author to whom correspondence should be addressed.
Abstract
With the development of the capital market, Mergers and Acquisitions has become an important way to enhance market competitiveness. As the most popular dairy industry in China, Bright Food tries to expand its scale through M&A with GNC Corporation. The Bright Food uses their specific method and characteristics to M&A the GNC. Although it ended in failure, we can still learn a lot from this event business. Based on this situation, this article will use the case study method to analyze the theory behind mergers and acquisitions. It will also focus on the reasons why Bright Food failed in M&A. It will, from the financial angle and industry angle, conduct an in-depth analysis and put forward the corresponding countermeasures and suggestions. The final result is that Bright Food has failed on M&A at GNC. The main reasons that caused failure were poor financial capacity and a slow speed to make a decision, as well as a lack of international recognition. In order to countermeasure the problem that caused the failure of M&A, the GNC can borrow from the bank to expand their financial capacity and do more advertising abroad to increase their international recognition.
Keywords
bright food corporation, mergers and acquisition, GNC, financial ability
References
1. Wenming, Song. (2010). Guangming Dairy’s overseas acquisition of the entire industry chain model is similar to that of COFCO. China Business Journal.
2. About the introduce to the GNC. (2006.10/4). https://www.gnc.com/
3. Xu, Zhang. (2010). the Bright Food M&A GNC, 017. https://www.21 CBN.com/
4. The timeline of the bright food M&A. (2015.6/14). https://Bright/4004716
5. Xia, Liu, (2023). A study on the spillover effect of issuance price-earnings ratio control — Based on the perspective of IPO price suppression and premium. Journal of Shandong University of Finance and Economics (04), 12-23.
6. Shanshan Jiang. (2023). The role and limitations of financial statement analysis — a case study of Bright Dairy Company. Bohai Rim Economic Outlook(6).
7. The financial asset gragh of 2010. (2010). https://doc.rongdasoft.com
8. Xinyu, He. (2022). Research on the Merger and Acquisition Integration of Bright Dairy Industry from the Perspective of Value Chain (Master’s Thesis, Beijing Jiaotong University)
9. Jian, Liu. (2022). Research on the Influencing Factors of Goodwill of Mergers and Acquisitions of Listed Companies in China (Master’s thesis, University of Electronic Science and Technology).
10. Yang, Han. (2021). Influencing factors and economic consequences of auditor selection in M&A transactions (Doctoral dissertation, Central University of Finance and Economics).
Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
- ISBN (Print)
- 978-1-83558-159-9
- ISBN (Online)
- 978-1-83558-160-5
- Published Date
- 01 December 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/56/20231076
- Copyright
- 01 December 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited