Study On The Performance Of Establishing M&a Fund Of Liuyao’s Performance

The national industrial policy has been gradually loosened as the national economic growth not achieve the expectation in recent years,thus providing strong support at the market policy level for corporate mergers and acquisitions.For strategic development,enterprises cooperate with private equity investment institutions as a way for enterprise mergers and acquisitions.The establishment of M&A fund through cooperation with private equity investment institutions can not only expand the industrial chain,but also make the best of private equity investment institutions’ management and investment experience to select suitable targets for enterprises,thereby improving the success rate of M&A.Based on the above background,this paper selects the case of the listed company Liuyao’s acquisition of Vantone Pharmaceuticals as the research topic.By adopting event analysis method and principal component analysis method,it studies the short-term and long-term effects after corporate M&A funds.At the same time,it also puts forward appropriate suggestions and inspirations for the future development planning of M&A funds.The research shows that: after the company announces the establishment of the fund,the short-term performance of the company has a significant improvement effect,and excess returns are achieved;from the medium and long-term perspective,the overall performance of the company is on the upward trend.However,due to the lack of emphasis on the concept of sustainable development,and the failure to reasonably integrate assets and reduce operating costs after the completion of the merger,the level of corporate profitability has declined.The research analyzes the operating performance of listed companies through the DEA method,and finds that the scale efficiency value of Liuyao shares in the same industry has been significantly improved.In addition,through further research on the integration effect of Liuyao shares after the merger,it is found that the merger fund can improve the company’s integration effect,but it is necessary to strengthen the post-investment management after the merger.To sum up,the establishment of M&A funds between listed companies and private equity investment institutions can not only increase the market share of listed companies,but take advantage of leverage,thereby achieving a certain scale effect.At the same time,the company should choose the payment consideration according to the company’s operating conditions to improve the success rate of merger and acquisition.