Study On The Risk Of The Merger And Acquisition Of Pailin Biology

M&A with foreign pharmaceutical industry in China shows the trend of oligopoly.The development of large enterprises is getting stronger and stronger.The development of small enterprises depends not only on their own efforts,but also on M&A behavior.In2019,the pulp collection volume of Pailin Bio was more than twice as far away from the leading enterprises in the industry.In order to become bigger and stronger,Pailin Bio chose Pais Pheko in the same industry as the acquired enterprise.First of all,it introduces the research background and significance,combs the related literature of M&A risk at home and abroad,shows the research content and framework,and reviews the concept of M&A risk and three types of M&A risk.Then it combs the related theories of M&A risk,so that we can have a clearer understanding of risk and identify risk points more easily.Secondly,taking Pailin Bio’s M&A of Pais Pheko as a case study,it introduces the process of M&A and the risks of Pailin Bio’s M&A.Financial risk integration uses Z-value analysis method and index analysis method to analyze the possibility that enterprises will go bankrupt due to this merger and acquisition,as well as the changes in profitability,solvency and operational capacity of enterprises before and after the merger and acquisition.Non-financial integration risks focus on business activities,corporate culture shaping and human resource allocation.Finally,according to the analysis of financial integration risks and non-financial integration risks,some suggestions on prevention and control are put forward.In the aspect of financial integration,it is necessary to formulate appropriate business strategies,establish and improve internal systems to prevent operational risks and establish and improve risk early warning and feedback mechanisms.In the aspect of non-financial integration,we should control the management direction and marketing channels from the whole situation,integrate the daily management into the integration of corporate culture and human resources to ensure the position of executives,establish incentive mechanism,and improve the working enthusiasm of team personnel,so that the company can operate normally and well after merger and acquisition.Based on the related concepts and theories of M&A risk,this thesis analyzes the case of Pailin Bio’s M&A of Pais Pheko by literature review and case analysis,identifies the risks existing in M&A integration,and obtains the measures to prevent risks in M&A integration.