M&A Motivation And Performance Of CONBA Taking Over Beit Guizhou Pharmaceutical

With the rapid development of economy and the acceleration of the process of economic integration,the competition among enterprises is becoming increasingly fierce.As an important way for the development of enterprises,mergers and acquisitions have been paid more and more attention by Chinese enterprises.Since 2014,a new round of mergers and acquisitions of pharmaceutical companies has lead the way.Learning from the experience of the international pharmaceutical giant,China’s pharmaceutical enterprises seize the related policies.According to the announcement of Listed Companies in 2016,the number of mergers and acquisitions in the pharmaceutical and health industry has again made the history.The scale of mergers and acquisitions event is more than 400,the amount of it is more than 180 billion yuan.Compared with the development of the whole national economy,the medical profession has performed well in recent years and has the foundation of continuous prosperity.On the one hand,the rapid development comes with fierce competition.In order to enhance competitiveness,companies must achieve bigger and stronger strategic objectives,meaning that the efficient to grow is to choose M&A.On the other hand,the medical industry is a typical high technology content,high degree of knowledge intensive,high value-added,capital intensive,long product development cycle and high risk industries.M&A becomes an effective way for outsiders to share those profits within.However,M&A is a very complex move for every company,and not all enterprises can achieve their desired goal.In this paper,we choose Guizhou Beit and Conba’s acquisition as a study case to find out how this event affect the outcome.The article is divided into six parts.The first part mainly expounds the research background and significance,methods and contents.The second part is about the performance of merger theory,motivation theory and risk theory.The third part is about the introduction of both sides,the theory of the action and the purchase of factor analysis and risk analysis.The fourth part is the analysis of the performance before and after merger Conba using the event analysis,short-term performance,analysis of financial index method whether the merger synergies with the long-term performance of the pharmaceutical industry to evaluate the average level of Conba.Conba’s cash flow,market power and some strong conclusions will be summaried.The fifth part is the use of EVA to calculate Conba enterprises added value.To compensate for the lack of financial index method,the results of the study show that the acquisition to Conba will end up in the economic value added,which has a significant positive impact.The sixth part is the conclusion.According to the enterprise development and the industry itself,it is crucial to make clear strategic acquisition targets and choose the subject of M&A at the right time.The key to a successful M&A is the integration of all aspects between the two companies after the M&A.