Research On The Mechanism And Effect Of Industrial M & A Fund On Jincheng Pharmaceutical M & A

With the development of economy,the competition among industries is intensifying.It is a choice for enterprises to realize resource integration and industrial optimization through M&A,and the M&A market is also developing in line with the trend,so the industrial M&A fund model emerges as the times require.In the pharmaceutical industry,the number of M&A transactions is also increasing.The pharmaceutical industry needs its own development,and with the support of national policies,mergers and acquisitions continue to be active.Industrial M&A funds have many advantages,such as reducing M&A risks,increasing the value of enterprises,and its establishment is also in line with the new trend of combining industry with finance.However,with the development of this mode,many problems in practical application are gradually exposed,so how to make better use of this mode is worth further research and discussion.Studying its action path and effect can make it give full play to its advantages and promote industrial upgrading.The research question of this paper is,what kind of influence will Jincheng Pharmaceutical bring when it implements M&A by setting up M&A fund,and what role does M&A fund play in it.This paper chooses Jincheng Pharmaceutical Co.,Ltd.to implement the M&A of Longyi Pharmaceutical Co.,Ltd.through the establishment of Jinsheng Fund as the research object.After describing the theoretical basis,it explores the function path of M&A Fund.In the case introduction part,this paper first introduces the industry background,and then introduces the M&A subject and M&A fund operation process in turn.In the case analysis part,firstly,the motivation of Jincheng Pharmaceutical’s M&A through the establishment of Jinsheng Fund is analyzed,and then the action path of Jinsheng Fund in this M&A transaction is analyzed in combination with the previous literature review and theoretical basis.In the effect part,the market reaction is analyzed by using the event study method,and then the impact of Jincheng Pharmaceutical’s introduction of industrial M&A fund on the M&A effect is obtained through the horizontal and vertical comparison of financial indicators and economic added value,and a conclusion is drawn.It is found that Jincheng Pharmaceutical’s acquisition of Longyi Pharmaceutical has upgraded the industrial chain,and the professional advantages of investment institutions have been brought into full play.By setting up Jinsheng Fund to raise funds,the financing constraints of Jincheng Pharmaceutical’s acquisition have been alleviated,and the selection and integration of acquisition targets have provided support for the success of subsequent mergers and acquisitions.Judging from the effect of M&A,the short-term financial indicators of the company have been improved,which has a significant impact on the income structure.Finally,I hope that through the research and analysis of this case,I can sum up the successful experience,and pay attention to risk prevention for its shortcomings,hoping to provide some reference for the operation mode of M&A and M&A funds.