Research On Motivation And Performance Of Serial M&A Of Pharmaceutical Enterprises

With the rapid development of China’s economy in recent years,the pharmaceutical industry which is an important part of the national economy,has maintained a rapid growth rate for a long time.The industry’s M & A market is active,and the mergers and acquisitions of pharmaceutical companies have shown a continuous M & A trend.On the one hand,similar to the western developed countries,increasing the concentration of the pharmaceutical industry is an inevitable trend,and serial mergers and acquisitions is a favorable mean to increase the concentration of the pharmaceutical industry;on the other hand,encouraged by the national policy environment,pharmaceutical companies actively use strategic mergers and acquisitions to actively carry out strategic deployment which Committed to achieving the entire industry chain layout.However,due to the characteristics of continuous mergers and acquisitions that are costly and difficult to integrate,there are certain risks remained about continuous mergers and acquisitions.It is unknown what the performance of continuous mergers and acquisitions will be.Therefore,the article selects Shanghai Pharmaceuticals as its representative,and studies the continuous mergers and acquisitions of Shanghai Pharmaceuticals from 2010 to 2018 as the research object to explore the performance of continuous mergers and acquisitions of pharmaceutical companies.The research of this article is as follows: firstly,define the related concepts of continuous mergers and acquisitions,continuous merger and acquisition performance and evaluation methods in this article,introduce the possible continuous merger motivation theory and the logic of continuous merger and acquisition performance generation,and build a theoretical framework;secondly,introduce the basic situation of Shanghai Pharmaceuticals,the process of continuous mergers and acquisitions,analyzes the reasons for the continuous mergers and acquisitions of Shanghai Pharmaceuticals;thirdly,analyze the performance of continuous M & A driver performance and measure the short-term and long-term overall performance of continuous M & A from two dimensions: short-term market value and long-term financial performance;finally,verify whether there are other motivations based on the performance analysis results.Research results show that through continuous mergers and acquisitions,pharmaceutical distribution companies can achieve some of the motivations,such as corporate strategy and market response in the short term,but continuous mergers and acquisitions of pharmaceutical distribution companies may not be optimistic in terms of synergy and long-term performance,and excessive management Other motivations such as self-confidence and the pursuit of private interest do not significantly affect the continuous merger and acquisition behavior of the enterprise.It can be seen that in this case,the continuous merger and acquisition is indeed caused by corporate strategy and synergy.According to the problems of continuous mergers and acquisitions in this case,this article summarizes some suggestions from the aspects of the rationality of the merger target and the effectiveness of integrated resources for other companies to refer to.