A Case Study On Serial M&as Of A Company

As the medical reform enters a deep-water zone,a series of policies slow down the growth of pharmaceutical industry,and those upstream companies have more narrow living space.Along with the furious competition,many pharmaceutical enterprises start to participate in the layout of industrial chain to realize the transformation and upgrading of enterprises.How to achieve the transformation and upgrading by serial M&As? This paper selects A company to be a case study,which is the representative of pharmaceutical enterprises,that has both theoretic and realistic significance.The paper takes A company as the subject,and takes the theory of synergy and the resource-based theory as cornerstone,based on the sample data of serial M&A from 2014 to 2016 of A company,it discusses and analyzes serial M&As of A company with the goal of industrial chain layout,by means of event study,case study method and financial analysis.The contents of the paper include: based on the introduction of the history,business characteristics and the serial M&As process of A company,first of all,it analyzes the motivation of serial M&As of A company,and the influence path of transaction scheme and integration measures on the achievement of objectives of serial M&As with the application of relevant theories.Secondly,it verifies whether the serial M&As achieve expected effect that includes management synergy,operating synergy and financial synergy,by means of the shortterm market response and long-term financial performance.Based on this,the paper further diagnoses the problems and risks in the process of serial M&As.Finally,draw inspiration from case study.Through the case study,the conclusions are:(1)The motivation of the serial M&As of A company includes: the policies provide the favorable condition,and the demand of transformation and upgrading under the strategic goal-driven,and the demand of efficiency improvement based on synergy expectation,and the demand of diversified business under performance pressure.(2)Reasonable transaction scheme helps to reduce the risk of the serial M&As and optimize the capital structure of enterprises.Setting up industry buyout fund provides an effective way to solve financing problems.Taking active integration measures helps create synergies,such as organizational integration,personnel integration,business integration and financial integration.(3)Through integration,the serial M&As of A company actually generate management synergy,operating synergy and financial synergy.At the same time,serial M&As significantly improve the enterprise value and achieve transformation and upgrading.(4)However,those problems in the process of A company' serial M&As reflects the risks like goodwill impairment and policy fluctuation,which have negative effect on longterm performance of A company's serial M&As.For these risk points,it is proposed that do a good job in investigation work and optimize the performance compensation commitment,etc.