The Study On Valuation Of Mergers And Acquisitions In S&P Pharmaceutical Industry Co.,Ltd

In recent years, because that we are in the special historical background after the financial crisis, in the meantime, global economy is in decline. It is very important to assess the value of target corp in merger and acquisition. To realize economy to cross the key that exhibit seven more, merger and acquisition phenomenon emerge in endlessly. This essay hopes to dig deeper into the company’s internal problems through studies on valuation of mergers and acquisitions and major shareholders invade the interests of small shareholders.This paper mainly uses the case analysis method, which uses the combination of qualitative and quantitative analysis method. This paper analyze the target company valuation in the acquisition and directed additional shares pricing.Based on the value of the target company revaluation as well as the stock price compared with the same industry, we can find that target corp overestimate value and underestimate stock pricing situation in the acquisition, which reflect big shareholders invade the interest s of small and medium-sized shareholders in two ways. Firstly the research idea of this paper is to analyze the macroeconomic environment, the wire and cable industry and its prospects, which will analyze the macroeconomic development situation and prospects of the macroeconomic environment as well as its influence on wire and cable industry. Secondly, combining companies’ present situation, I will use two methods to revaluation the company value, and combine with the analysis of the pricing issue shares, in order to further analyze the acquisition of valuation differences reflect the problems within the company. Thirdly combining the two problems, we can find that there is serious interest orientation in the acquisition, the controlling shareholder infringe on the interests of minority shareholders by manipulating the dual pricing. In the end, some constructive conclusions and suggestions are presented from the analysis results.The main conclusions can be listed as follows. Firstly, with the frequent occurrence of M&A, M&A valuation phenomenon become more and more important. Secondly, large shareholders invading the minority shareholders interests is divided into two aspects involved in mergers and acquisitions:the evaluation of value of the target company and stock pricing. Thirdly, the invading action happens is closely related to the problems existing in the internal management. The internal management embodies in small shareholders’rational coldness, the independent director system is imperfect and institutional investors did not play a proper role. In order to solve the problems existing in the internal management, besides appeal, we should improve the system of internal management, including the right of discourse,more interests related to the company, motivating institutional investors to maintain the company’s overall interests, thus to some extent avoiding the infringement behavior of medium and small shareholders interests.Past research is mainly aimed at valuation method, valuation theory, and large shareholders will invade the interests of small and medium-sized shareholders in mergers and acquisitions. The innovation of this article is to involve ways of controlling shareholders invade the interests of the minority shareholders in acquisition, especially a double valuation mode of invading small and medium-sized shareholders. This paper provides a new perspective on the related transactions of mergers and acquisitions valuation problem, and the big shareholders invade the rights and interests of minority shareholders in mergers and acquisitions valuation.This article will base on the specific case study of the valuation problem in mergers and acquisitions, involving in the power behind the problem. This article will combine with power issues, so that balance advice to the phenomenon can be proposed.