Research On Financial Risks Of The Pharmaceutical Enterprises' M&A

Since China's market economy began capital operations,mergers and acquisitions between enterprises have played a significant role in its development.In order to expand their scales and obtain more resources,enterprises usually achieve their own goals through M&A.The pharmaceutical companies are not an exception in M & A transactions.Although M&A is a common method for corporate expansion,that does not mean all mergers and acquisitions are successful.According to relevant data analysis,more than half of mergers and acquisitions in China will not be successfully implemented owing to various reasons.M&A of enterprises is irreversible and complex,in the meanwhile,it involves a large amount of capital operations,which greatly increases financial risks.By understanding and analyzing the financial risks existed in mergers and acquisitions,and responding to these financial risks in a planned way,it is beneficial for enterprises to improve the effectiveness of risk control,and also reduce the occurrence of failed mergers and acquisitions,and provide business development after mergers and acquisitions.Strong support.The implementation of new medical reform policies,such as the price control of medical insurance and the two-vote system,has brought great challenges to the transformation and development of pharmaceutical companies.In this industrial environment,a large amount of pharmaceutical companies have also consolidated their market position through M&A.Taking the sunrise pharmaceutical industry as the background,this paper conducts a comprehensive study on the mergers and acquisitions of pharmaceutical companies through classical theory and case analysis.Firstly,it describes the current status of mergers and acquisitions of pharmaceutical companies in China,summarizes the existing researches on financial risks of corporate mergers and acquisitions by domestic and foreign scholars,and elaborates the types of corporate mergers and acquisitions and related theories of financial risks,thereby providing solid theoretical support for subsequent case analysis.Then,China Resource Sanjiu's merger and acquisition is selected as a typical case for an in-depth research,including tracking the whole process of mergers and acquisitions,and analyzing the motivations of mergers and acquisitions and the financial risks and the relevant sources of risks.Finally,the research results in this paper find that before the merger China Resources Sanjiu's valuation ofZhongyi Pharmaceutical is reasonable and the valuation risk is relatively small;in the merger and acquisition,the risk of financing payment is caused by the unstable financing structure of the company due to the single financing and payment method;the integration speed is reduced mainly due to the inconsistent financial organization structure and staffing factors.This paper combined with the case puts forward corresponding countermeasures for financial risks at each stage of M&A.Mergers and acquisitions in the pharmaceutical industry are on the rise every year.This case analysis of China Resources Sanjiu's merger and acquisition of Zhongyi Pharmaceutical will provide relevant theoretical guidance and recommendations for the mergers and acquisitions,reduce the possibility of mergers and acquisitions financial risks,and lower merger and acquisition failures rate,thereby promoting the overall healthy development of the pharmaceutical industry.