Financial Risk Analysis Of Mergers And Acquisitions In The Pharmaceutical Industry

In recent years,under the impact of the global merge's wave,the number of merge events in our country continues to rise,and the amount of merge events is increasing year by year.The pharmaceutical industry is no exception,and the number of pharmaceutical merge events are increasing at the same time.In order to expand the business scope,enhance the comprehensive strength and improve the speed of its own external growth,the pharmaceutical companies constantly make acquisitions.However,in addition to the rapid expansion of mergers and acquisitions,but also there are certain risks.Among all the risks,the financial risk is very important.Because it will influence many other risks of mergers,which directly affects the success of mergers.Therefore,the analysis of the pharmaceutical industry mergers and acquisitions' financial risk has a certain practical significance.This paper is divided into five parts.The first part of the article describes the research background,purpose and significance,literature review and research ideas and methods.Then the second part introduces the related theory of merger and acquisition of the financial risk,and analyzes the development and characteristics of the pharmaceutical industry,as well as the current status of mergers and acquisitions in the pharmaceutical industry.These theories are for the following case analysis.Then,the third part of this paper briefly introduces the two merge enterprise Huarun Sanjiu and Guilin Tianhe.It also introduces the basic situation of the merge events and analyze the reasons of the merger.The fourth part,on the basis of the above theoretical knowledge and the basic situation of mergers and acquisitions,the article analyzes the merge financial risks in detail.According to the actual situation of both sides,the analysis of financial risk mainly includes decision and valuation risk before the merger,financing and payment risks,and the integration risk after the merger and acquisition.Then the article puts forward some suggestions to solve these risks.The fifth part is the summary of the full text,according to the risk analysis of the case in the fourth part.It makes some good suggestions for the pharmaceutical industry about the financial risk of the mergers and acquisitions' events.Combined with the characteristics of the pharmaceutical industry and the present situation,the article analyzes the financial risk when Huarun Sanjiu merges Guilin Tianhe and make some effective corresponding solutions.This is a reference to the pharmaceutical industry that is experiencing a wave of mergers and acquisitions.