Research On The Motivation And Performance Of The Continuous Mergers And Acquisitions Of LBX PHARMACY

As the sales terminal of the pharmaceutical industry chain,the pharmaceutical distribution industry is an important part of China’s pharmaceutical system.With the successive promulgation of national medical policies,the pharmaceutical distribution industry has accelerated the process of intensification and chain development,and more and more companies have quickly achieved industry market concentration through mergers and acquisitions.At the same time,under the influence of the increasingly severe aging trend and the raging new crown epidemic,national health issues have received unprecedented attention.Residents’ consumption demand for daily and preventive medicines has increased year by year,which has brought a good opportunity for the development and growth of pharmaceutical distribution companies,and the wave of mergers and acquisitions in the pharmaceutical distribution industry will continue.Therefore,it is of great practical significance to study the continuous M&A of enterprises in this industry.LBX PHARMACY is a company that rapidly expands the market through continuous mergers and acquisitions.What are the motivations for the continuous mergers and acquisitions of the retail pharmacy chain enterprises of this model? How has the expected goal of successive mergers and acquisitions been achieved? What is the company’s performance under continuous mergers and acquisitions? These issues are worthy of study.Through the review and arrangement of relevant theories and literature,combined with the case analysis method,this paper conducts a comprehensive analysis of the motivation and performance of the continuous mergers and acquisitions of LBX PHARMACY.First of all,this paper describes in detail the main body of continuous mergers and acquisitions,its industry background and the process of continuous mergers and acquisitions,and forms a basic understanding of the continuous mergers and acquisitions situation of LBX PHARMACY.Secondly,combined with the dual factors of external environment driving and enterprise development needs,it deeply analyzes the motivation of the company’s continuous mergers and acquisitions.Then,from the three dimensions of market effect,financial effect and non-financial effect,combined with quantitative and qualitative methods,this paper makes a comprehensive analysis of the performance of the continuous mergers and acquisitions of LBX PHARMACY.Finally,according to the analysis of the continuous mergers and acquisitions of LBX PHARMACY,it summarizes the gains and losses of their mergers and acquisitions,and provides experience and reference for other pharmaceutical distribution companies to carry out continuous mergers and acquisitions.Through the in-depth study of the case of the continuous mergers and acquisitions of the LBX PHARMACY,this paper finds that:(1)The external environmental impact and enterprise development need to jointly drive the LBX PHARMACY to carry out continuous mergers and acquisitions;(2)The overall performance of the market performance brought by continuous mergers and acquisitions to LBX PHARMACY is average.Affected by the wave of mergers and acquisitions in the pharmaceutical distribution industry,the short-term performance has changed from “positive” to “negative”.Due to the rapid pace of mergers and acquisitions in the later stage of the company,the gap between long-term performance and the industry has widened;(3)The negative impact of continuous mergers and acquisitions on the financial performance of LBX PHARMACY is too high.Continuous m&a have significantly improved the profitability of the company,but the cash transaction method has increased the company’s debt repayment pressure;(4)The non-financial performance brought by the continuous mergers and acquisitions to the LBX PHARMACY basically achieves the desired effect.Continuous mergers and acquisitions have effectively increased the company’s market size,and its operating efficiency and professional service capabilities have also been enhanced.The strategy of continuous mergers and acquisitions is an important way to realize the intensification of the pharmaceutical distribution industry.According to the conclusions of the case analysis,including the experience and inadequacies of the continuous mergers and acquisitions of the LBX PHARMACY,the research inspiration of the continuous mergers and acquisitions of the common people company and other drug distribution enterprises is summarized:(1)Innovate M&A payment methods to ease the financial pressure of enterprises;(2)Pay attention to the internal improvement of the company and avoid excessive mergers and acquisitions;(3)Attach importance to post-merger integration and give full play to synergies;(4)Dynamically adjust the M&A strategy and look at the company’s long-term development.Through the research enlightenment,it is expected to provide some useful reference and guidance for the continuous M&A transactions of the pharmaceutical distribution industry companies.