Motivation And Performance Of Humanwell Healthcare’s Continuous Mergers And Acquisitions

With the increasing demand for healthcare,an ageing population and the implementation of the two-child policy,the pharmaceutical industry is facing new opportunities for development.Even if a company has reached a leading position in the industry,it still needs to transform and upgrade itself in order to avoid being eliminated from the competition nowadays.In view of this,mergers and acquisitions have become the main options for companies to cope with difficult business conditions or to expand their production scales.With the global M&A boom and the increasing number of domestic M&A cases,many companies decided to use successive acquisitions to build on their strategies and realign their industrial chains.As single acquisition sometimes fail to increase market shares and cannot improve their overall operations or bring positive economic benefits potential.Many companies decide to use the method of continuous mergers and acquisitions to implement their strategies and realize the overall adjustment of the industrial chain.However,due to the high capital consumption and difficult integration conditions,besides,there are potential risks associated with undertaking successive M&A.Thus,it is necessary to study the performance results of successive M&A.Humanwell Healthcare’s is an A-share listed pharmaceutical manufacturing company which has conducted a number of M&A transaction activities in recent years and it is a representative company in the industry.This paper selects Humanwell Healthcare’s’ s M&A events from 2014-2020 as a case study,on the basis of analyzing the motives of enterprises’ continuous M&A,and conducts an empirical analysis in terms of both short-term and long-term corporate performances.Utilizing the event study method to assess the company’s short-term performance of Humanwell Healthcare’s’ s successive M&A,firetly apply factor analysis to analyse Humanwell Healthcare’s’ s long-term performance,then combines non-financial indicators with the company’s performance,and finally summarises Humanwell Healthcare’s’ s successive M&A performance and gives some useful insights that will hopefully be helpful to other companies in the same industry.