Analyze the M&A Strategy in Consumer Goods Segment_ Case study of Masan Consumer

Abstract

The research estimates operational and financial performance of Masan Group (MSN) during Merger and Acquisition (M&A) period through financial analysis. Specifically, the research investigates the effect of M&A strategy in Consumer goods (CG) sector on financial performance of Masan Group in M&A period. The research was conducted by using accounting measure-based study methodology to analyze annual data collected from Masan Group’s audited consolidated financial statements. The research begins with providing rationale of research, which depicts current M&A trend general in the world and particular in Vietnam. Besides that, the research question and research objectives are proposed. After that, the effects of M&A activity on Masan Group’s financial performance are investigated by using accounting measure-based study methodology. At last, the authors clarify issues Masan Group facing due to M&A and draw experience lesson for industry as well as other firms. After processing the data, the result reveals that M&A strategy delivered better revenue improvement. Although Cost of goods sold (COGS) level decreased, the increase in Sell and Administrative (S&GA) level and other expenses results in profit declination. The ratios of fixed assets turnover and the total asset turnover reduced during M&A period. In financial synergies perspective, M&A strategy create negative effect on cash coverage, liquidity and leverage of Masan Group. In general, M&A strategy could not create all positive improvement on the financial performance in short-run.