Research On M&A Performance Of Pharmacetical Enterprises Under Compensatory Motivation

In recent years,mergers and acquisitions have gradually become an important path for more and more enterprises to achieve their development goals.Excellent M&A behavior can optimize the resource allocation of the enterprise,but the failed M&A behavior is likely to reduce the resource allocation rate of the enterprise,which will have a huge negative impact on both parties.With the rapid development of China's economy and the increasing number of mergers and acquisitions,many companies have expanded their operations and reduced their competitors through mergers and acquisitions.And in industries with low industrial concentration,mergers and acquisitions occur more frequently.The pharmaceutical industry is one of these industries.With the continuous improvement of the national living standards in our country,medical health has received more and more attention from everyone.However,the current pharmaceutical industry is scattered in resources,the industry concentration is low,and the competitiveness is far below the international level.Industry integration is imperative.As a consumer-oriented industry,the pharmaceutical industry has high demand elasticity and risk.More and more pharmaceutical companies choose mergers and acquisitions as one of their own development strategies.This paper collects,collates,and studies domestic and foreign research literature on mergers and acquisitions,mergers and acquisitions,and M&A performance in the pharmaceutical industry.It is concluded that any details of different drivers in different industries may affect the final M&A performance of the company.Therefore,this paper will analyze the development of China's pharmaceutical industry from various aspects,the status of mergers and acquisitions in China's pharmaceutical industry,and the characteristics of mergers and acquisitions of Chinese pharmaceutical companies,and divide the motivations of Chinese pharmaceutical companies into policy-driven and compensatory drivers.From the perspective of compensating the motives,Xinbang Pharmaceuticals acquired the peptide biochemistry as a case study of pharmaceutical companies,combing the case of reducting mergers and acquisitions,using eventresearch method and financial index analysis method to comprehensively evaluate its merger and acquisition,and finally obtained the merger and acquisition of pharmaceutical enterprises.Related recommendations.This paper is divided into seven parts.The first part first explains the background and significance of the topic selection,and then summarizes the domestic and foreign literatures from three aspects: M&A motivation,M&A performance impact and performance evaluation methods.The second part is an overview of the basic theory of this article.The third part sorts out and summarizes the development of China's pharmaceutical industry,and analyzes the motives,M&A characteristics and M&A trends of Chinese pharmaceutical companies.The fourth part is the case analysis.This article comprehensively combs the M&A process of peptide biochemistry in the acquisition of Xinbang Pharmaceutical through the timeline.The fifth part is the performance research of the M&A case.The analysis of the event research method in the early stage of M&A shows that the M&A behavior has a positive announcement effect,and the market gives a positive attitude.In the latter stage of the M&A,the financial index evaluation method is adopted,from profitability,growth ability,and debt repayment.The ability and operational ability evaluated the changes in financial indicators before and after the merger,which concluded that the merger had a positive impact on Xinbang Pharmaceutical.The sixth and seventh parts are the M&A advice of pharmaceutical companies under the compensatory motivation and the shortcomings and prospects of this paper.