Research On The Financial Integration Of Pharmaceutical Industry M&A

In recent years, M&A has become an important way of the enterprise’s development. M&A in China plays a more and more important role in the world. Research results show the M&A success rate is low, only less than30%. The reason is in many aspects, the main reason is that there is no effective integration of merger and acquisition of enterprises, and financial integration is a key in the integration, which provides a solid theoretical foundation for the study of M&A integration. At present, research on M&A integration from multiple aspects of strategic integration, organizational structure, human resources, finance, culture and so on. Only few books make a separate study on financial integration. The research is only in theory, did not specifically study the financial integration, nor to combine the theory with concrete case. Support by national policy guidance and market, the domestic pharmaceutical enterprises will accelerate the integration.This paper uses the research method of case analysis to study and discuss financial integration from theory and practice problems. Through the financial integration case of Huarun group merger of Sanjiu Company, the specific financial integration measures are enumerated and evaluated, at the end by analyse Sanjiu’s financial statement, evaluation of the effect of financial integration of theory and practice, to achieve better integration. The first chapter of this paper describes the background and the research significance, research methods and ideas on the topic, the domestic and foreign research review. The second chapter describes the concept of mergers and acquisitions of financial integration and theoretical basis, necessity, principles, discusses the main content of financial integration, the integrate mode. The third chapter takes China’s pharmaceutical industry as an example, describes the pharmaceutical industry and the current state of M&A development, industry regulation and policy in recent years, illustrate the annexation and reorganization in the future for a long period of time in the industry is expected to accelerate, and pointed out that problems and reasons of mergers and acquisitions financial integration in China’s pharmaceutical industry. In the fourth chapter takes Huarun group merger of Sanjiu Company as an example, discusses the process of financial integration, use financial index method and economic value added (EVA) method to evaluate the financial integration effect, revealing the case of financial integration of medical industry enlightenment. The fifth chapter puts forward some suggestions for China’s pharmaceutical industry mergers and acquisitions of financial integration.What is the new of this thesis is that combines financial integration contents with the pharmaceutical industry M&A case, analyzes and evaluates the effects of the key Points during the financial integration process, and then provides the financial integration measures of Huarun group merger of Sanjiu Company to the enterprises which are proceeding or will proceed the financial integration process.