On Motivation Analysis And Performance Analysis Of Cross-border Mergers And Acquisitions Based On Jiu'an Medical

The strategy of “Go Abroad” has promoted China's cross-border mergers and acquisitions,entering the peak of mergers and acquisitions once again.It is both an opportunity and a challenge for the development of China's medical industry.On the one hand,the strong support of national policies as the thrust of “Go Abroad”,medical companies have stepped into the cross-border M&A industry,acquiring overseas resources and technologies,and improving their competitiveness.On the other hand,due to the high risk of cross-border mergers and acquisitions,the lack of cross-border supervision and the lack of core competitiveness of enterprises,the scale and scope of mergers and acquisitions of medical enterprises in China continue to expand,but the success rate of mergers and acquisitions remains low.Therefore,it is increasingly important to analyze the M&A motives and the impact of M&A on the performance of listed companies.By using the way of combining theoretical analysis and case study method to explore the case of Jiu'an Medical merge e Device,This paper explores the motives of this case and how it affects the performance of Jiu'an Medical after the merger.and summarizes the results of the analysis,providing the corresponding recommendations from the perspective of companies and government.This paper is divided into four parts.The first part is the introduction.It mainly introduces the background and significance of this case and the research methods used.It focuses on the literature review related to cross-border M&A.and the literature review combs the three aspects of M&A motivation research,M&A performance related research and relevant policy recommendations to improve M&A performance;the third part is the case study.Firstly,it introduces the basic situation of both parties-Jiu'an Medical and e Device,and elaborates on the M&A process.On this basis,it focuses on the systematic investigation and analysis of the motivation of this case.Secondly,it analyzes whether the case of cross-border M&A improves the performance of Jiu'an Medical in detail from three aspects: financial performance,market performance and nonfinancial performance.The fourth part is the recommendations and conclusions.It proposes to improve the M&A performance separately for the company itself and the government according to the characteristics of the medical industry,and then concludes the analysis.Through theory and case analysis,we draw the following conclusions:Mergers and acquisitions motives: According to the information released by the company,the motivation for Jiu'an Medical cross-border merger and acquisition of e Device may be based on strategic transformation and synergy,but after in-depth analysis of the entire merger process,Jiu'an Medical may be in order to prevent being ST,and eager to improve profitability of the company,so,it is believed that this merger also has the motive of blind mergers.M&A performance: Through comprehensive analysis of financial indicators,market performance and non-financial indicators,all aspects of Jiu'an Medical's indicators are less than the industry average and the comparable company's level.The target company firstperiod earnings forecast completion rate is only 60%.Although company performance in the year of M&A increased,but after the completion of the M&A,the performance dropped significantly,the integration effect was not good,and the overall performance of the company was not significantly improved.Finally,based on the above two conclusions and the particularity of the medical industry,this paper proposes corresponding policy recommendations for improving the cross-border M&A performance of the medical industry: from a business perspective,one is to conduct a comprehensive assessment of risks to avoid blind mergers and acquisitions,and the other one is to increase The intensity of integration after mergers and acquisitions;from the perspective of the government,one is to face up to the characteristics of the medical industry and increase government intervention;the second is to establish relevant systems and reduce the high risk of medical mergers and acquisitions;the third one is reasonable selection of assessment methods,comprehensive application of multiple assessment methods.