Analysis Of M&a Perormance Of Fosun Pharmaceutical (Group) Co.,Ltd.

With the development and refinement of capital market in China,M&A is becoming a common tackle for a public company expanding.Nowadays,as the increase of the campaigns,M&A are showing a new trend of serial M&As,and the progress of Fosun Pharmaceutical is typical.In 2010 years,China set up structure adjustments in medicine industry and promoted mergers and reconstructions.Fosun Pharmaceutical has took the chance to carry out a serial M&As.Thanks to these strategies,Fosun Pharmaceutical stands out from the disorder medicine industry of China and growing up to the banner.At present,Fosun Pharmaceutical approximately achieves the goal of whole industry chain strategy.Fosun Pharmaceutical's soar mostly owes to continuous mergers.The serial M&As tackle is deserving for deeply studying and simulating.At present,the research on the effect of serial M&As is mainly based on empirical analysis,and there is very few case analysis of specific enterprise.Therefore,this paper takes serial M&As behavior of Fosun Pharmaceutical as the research object.Basing on definition,theory of motivation and effect of serial M&As,this paper summarizes the serial M&As process from the perspective of M&A subject,scale and type with serial M&As activities of Fosun Pharmaceutical from 2010 to 2015,and then analyzes the operation mode of serial M&As.This paper focuses on Fosun Pharmaceutical's strategic objectives and management characteristics to explore the motivation of serial M&As.And then analyses the result and motivation of Fosun Pharmaceutical serial M&As from the short-term market effect and long-term financial performance perspective.Finally,combining with the analysis of the operation mode of Fosun Pharmaceutical,this paper summarizes the experience and shortcomings of serial M&As,and provides reference for the pharmaceutical enterprises that will carry out serial M&As.In general,the following conclusions are obtained:(1)The motivation of Fosun Pharmaceutical's serial M&As is multidimensional,including industrial environment,policy environment,strategic motivation and management behavioral motivation;(2)The serial M&As of Fosun Pharmaceutical have increased the shareholder's wealth.The vertical M&A can obtain more positive excess returns than the horizontal M&A and the serial M&As doesn't cause diminishing effect of shareholder's wealth;(3)Fosun Pharmaceutical's serial M&As behavior has gained the advantage of scale and realized the synergistic effect of operation and management to a certain extent,but serial M&As brought the liquidity risk and weakened the solvency of the enterprise;(4)Through the integration of M&A,the goal of focusing on the main business can be achieved,and the excellent investment capacity has also become an important factor that supports the rapid development of the main industry.Overall,Fosun Pharmaceutical had achieved spanning development through serial M&A.But the company should pay more attention to the method of consideration payment and the integration of product line after serial M&A to decrease liquidity risk and realize sustainable development.