Comparative Analysis Of M&A Performance Of State-Owned Enterprises And Non-State Enterprises

China has now become the world's second largest M&A market.Mergers and acquisitions is one of the most active capital market components.State-owned enterprises are also actively promoting their own development through M&As.There are a limited number of case studies on M&A performance of state-owned enterprises in China.Most of the studies are focused on theoretical analysis.However,the performance of M&A is crucial.This is of great importance to enhancing the competitiveness of Chinese enterprises and accelerating the industrial transformation.This paper chooses the major M&A s conducted by Shanghai Pharma and Fosun Pharma from 2011 to 2014 as the research object,and compares the short-term and long-term performance between the two using incident analysis,result analysis and other soft indicators.Finally,compare the difference of integration between the two,analysis of its impact on the performance.The purpose of this paper is to explore the strengths and weaknesses of state-owned enterprises in M&A performance through qualitative and quantitative analysis,and to study its intrinsic reasons,to provide some ideas for M&A of state-owned enterprises.The following conclusions are obtained:1 M&A's effect on Fosun Pharma's short-term share price is stronger than that of Shanghai Pharma;2 M&A's influence on Fosun Pharma's profitability and operational capability is better than that of Shanghai Pharma;3 Shanghai Pharma's liability structure was more stable;4 Fosun Pharma invested more in research and development,with good innovation ability;5 Shanghai Pharma sales were more concentrated.Fosun Pharma relies on the joint venture to expand its sales network.6 Integration shows that Fosun Pharma adopts a more flexible integrated management approach,which is superior to Shanghai Pharma in terms of immediate integration difficulty and long-term development in the future.Thus following inspiration:1 choose the right merger target.Selection should pay more attention to the value of the subject itself;2 choose a flexible payment methods.Other methods such as cash payment and equity payment can be adopted to relieve the pressure on liquidity and to adopt multiple acquisitions and sub-grants to purchase capital.Optimize the asset-liability structure by taking advantage of own state-owned enterprises,obtaining more long-term loans,and making full use of commercial credit financing;3 Adopt a more flexible approach to resource integration,including a flexible shareholding ratio,management,research and other businesses based on the overall control of the headquarters,enhance the autonomy of various activities to improve the success rate of mergers and acquisitions.