Research On The Performanc Evaluation Of Overseas Mergers And Acquisitions In China’s Medical Device Industry

Since the "Thirteenth Five-Year Plan",China’s economy has entered a new normal,and residents’ income and quality of life have been improved simultaneously.The accelerated aging of the population has led to a sharp increase in medical needs.The State has successively introduced policies such as the "Special Examination and Approval Procedures for Innovative Medical Devices" to encourage domestic medical device innovation and import substitution,and provide development opportunities for the medical device industry.In this environment,many medical device companies hope to integrate overseas advanced technology and other resources through overseas mergers and acquisitions to seize a place in the medical device market.In 2015,China’s medical device industry began a wave of overseas mergers and acquisitions,and the amount of mergers and acquisitions hit record highs.However,overseas mergers and acquisitions are a relatively high-risk activity.Therefore,a series of issues such as how the merger results of these medical device companies are achieved and whether they have reached the original intention of mergers and acquisitions need to be studied.Based on the above background,this article selects a typical overseas M&A case in China’s medical device industry recently--the M&A case of Company L as a research object.By selecting relevant financial indicators and non-financial indicators,it uses the entropy weight method to evaluate the financial performance of Company L,and This is complemented by a non-financial performance evaluation for an overall analysis to explore the impact of overseas mergers and acquisitions on its performance changes.First,it reviewed the research results of academia on overseas M&A performance,and explained related concepts and theories.Subsequently,the development of China’s medical device industry and the status of overseas mergers and acquisitions were introduced,and the selection of performance evaluation systems and evaluation indicators was explained.Then,a detailed analysis of the merger and acquisition case of Company L was carried out.By comparing the performance changes before and after the merger,the potential risks of its overseas merger and acquisition performance were analyzed,and specific suggestions were made.In the end,it provides experience and lessons for overseas mergers and acquisitions in China’s medical device industry,and summarizes the research conclusions drawn from the cases and the prospects for theresearch.The research results in this paper show that after the merger and acquisition,company L’s operating performance has significantly improved,its market share has expanded significantly,its strategic goals have been basically achieved,and internal and external linkage effects have been significant.This merger has been relatively successful.Through the analysis of cases,it provides experience and references for overseas mergers and acquisitions of China’s medical device industry,and provides references for relevant stakeholders,mainly including the following five aspects: determining the merger and acquisition method,choosing horizontal mergers and acquisitions;screening the merger and acquisition goals,formulating detailed plans;comprehensive Payment methods to reduce the risk of mergers and acquisitions;strengthen policy research and formulate development strategies;give full play to industrial advantages and improve competitiveness.