Research On The Performance Of VTR’s Continuous Mergers And Acquisitions

With the transformation and upgrading of China’s economic structure,the industry has become more concentrated,the structure has been more optimized,and the competition in the pharmaceutical industry has become increasingly fierce.As a part of the pharmaceutical industry,biomedical industry is also one of the most valuable sub-industries in the pharmaceutical industry.In recent years,our government has given vigorous support to the development of biomedical industry.Through the linkage between government guidance and private investment,the biomedical industry has shown a trend of agglomeration and development,ushering in the peak period of M&A and restructuring.Many enterprises have made frequent mergers and acquisitions in order to seek their own development.Whether frequent mergers and acquisitions are conducive to the development of enterprises,what impact on these enterprises? Different from the general single merger and acquisition behavior,it is worthwhile to study and discuss the performance of continuous M&A of biomedical enterprises.This paper attempts to study the corporate performance of the continuous M&A of the biological industry in order to improve its industrial value chain.This article is divided into six parts.The first part introduces the research background and significance,and plans the case study method and research framework.The second part combs the relevant concepts and literature at home and abroad,summarizes the existing research results and main points of view,summarizes the basic theory,and lays a theoretical foundation for case studies.The third part introduces the development summary of VTR Group,reviews its continuous M&A activities after listing,then analyses VTR Group’s M&A motivation from the macro environment and industry background,and finally combs its M&A motivation of horizontal and vertical business expansion from the perspective of industrial value chain.The fourth part uses the event study method to analyze and evaluate the short-term performance of continuous M&A,mainly to analyze the Abnormal Returns.The fifth part uses the financial index method and factor analysis method to analyze and evaluate the long-term performance of VTR Group’s continuous M&A,including the selection of financial indicators,data processing and principal component analysis.Through factor scores,it evaluates from horizontal,vertical and impact factors,and finally evaluates the extension effect of its industrial value chain.The sixth part,conclusions and prospects,summarizes cases,draws conclusions,puts forward relevant suggestions,and provides ideas and reference for related continuous M&A activities.Finally,the shortcomings of this paper are discussed.Through the research,we find that the short-term performance of VTR’s M&A has been declining from positive to negative,and the wealth benefit has been declining obviously.The long-term performance is better during the duration of continuous M&A,and declines after the end of continuous M&A.