| The modernization of China’s medical device industry began in1950 s,The domestic equipment achieved a breakthrough.The industry started with middle or low-end equipments,which established its root in the market steadily.In the medical device industry,many companies have become leaders in the industry through serial M&As,while some companies cannot effectively integrate with the acquired party,leading to a crisis.Lepu Medical Company is a medical device company that mainly produces high-value consumables and medical equipment.Since 2013,it has been deploying the cardio-cerebrovascular drug market,and has built four major business segments which include medical devices,drugs,medical services and new medical formats through serial M&As.This article selects Lepu Medical as the research object,and deeply analyzes the performance of Lepu Medical’s serial M&As.The paper clarifies the related concepts and theoretical basis of corporate mergers and acquisitions.At the same time,it analyzes the main driving factors of Lepu Medical’s serial M&As,and then establishes a comprehensive evaluation system for the performance of continuous mergers and acquisitions through the event research method and the Du Pont analysis method,and discovers the existing problems,and obtains inspiration for the merger and acquisition activities of the company and the same industry.This paper believes that Lepu Medical’s short-term market response performed well.Through the study of long-term performance,it is found that serial mergers and acquisitions have increased the scale of corporate assets,operating income and net profit.Among them,some problems have been discovered.Its net sales margin has been declining,its costs and expenses have risen rapidly,its operating capacity has been improved but it is far below the industry average,and its liquidity risk has increased.The paper summarizes the reasons that affect the performance of the serial M&As,including factors such as the choice of target companies,financing methods,payment methods,merger integration and other factors.Finally,policy recommendations were put forward from four aspects: clarifying the strategic objectives of mergers and acquisitions,enriching payment methods,strengthening mergers and acquisitions integration,and improving corporate governance mechanisms. |
