A Study On The Performance Of Huadong Medicine's Acquisition Of Sinclair Based On The Balanced Scorecar

The globalization of Chinese economy has resulted in a steady growth of FDI,and transnational mergers and acquisitions have been one of the most important tools.With the acceleration of "globalization" of Chinese companies,a major wave of "overseas M&A" began in 2016 and is gradually becoming a major player in cross-border M&A worldwide.Pharmaceutical companies are particularly active in foreign M&A,Primarily because of strong domestic competition and the necessity of expansion of business overseas.However,there are certain risks in M&A.Whether the acquired company can bring positive effects to the company and achieve its strategic goals is the most important concern for every company,so the choice of performance evaluation method is crucial for the company.This work is based on the balanced scorecard theory and combines the hierarchical analysis method to systematically analyze and study Sinclair’s performance after its acquisition by Huadong Pharmaceutical.Firstly,the reason and process of acquisition of Huadong Pharmaceutical by Sinclair are analyzed,and based on the actual situation of Huadong Pharmaceutical,add the dimension of social responsibility to the four dimensions of the traditional balanced scorecard-finance,Customer,inner process,study and growth-and set up the M&A Performance Evaluation System based on the Five Levels.Second,Hua Tong Pharmaceutical’s merger and acquisition performance will be analysed and evaluated in depth by comparing the performance indicators over the two years before and four years after the merger and acquisition.Second,a thorough analysis and evaluation of the merger performance of Hua Tong Pharmaceuticals was carried out by comparing the performance indicators for the two years before and the four years after the merger.Again,we calculated the weights and scores and found that Huadong Pharmaceutical’s overall M&A ratio was 6.6750,which is between average and good.In conclusion,the East China pharmaceutical industry has modernized and developed through mergers and acquisitions,but its performance still needs to improve.