Research On M&A Performance Evaluation Of Fosun Pharm Based On The Perspective Of Industrial Evolution

At present,there are great differences in the evaluation results of enterprise M &A performance among domestic scholars.There is a lack of theories on the intrinsic motivation of enterprise M&A and industrial development.Under the guidance of industrial evolution theory,we can evaluate the corporate M&A performance by dividing industrial evolution stages and designing indicators and weights based on M&A motives,which is more relevant to the needs of enterprises and can provide a reference basis for M&A.In the increasingly fierce market competition,more and more pharmaceutical companies want to gain competitive advantage through large-scale mergers and acquisitions.This paper selects 34 M&A events of Fosun Pharmaceuticals from 2004 to 2020 as the research sample,following the logical idea of "industrial evolution theory-M&A motivation analysis-M&A performance evaluation".First,based on the industrial evolution theory,we analyzed the M&A characteristics and objective motivations of pharmaceutical companies at each stage of development in the pharmaceutical industry,and constructed a multiple motivation system in three aspects:economic,strategic and management with the help of a balanced scorecard.Then,we designed quantifiable indicators to measure the degree of achievement of each M&A motivation based on the M&A motivation,and used the entropy weighting method to complete the weighting of indicators,and built a comprehensive matrix evaluation system that unifies the evaluation of traditional enterprise M&A operation performance and the evaluation of basic M&A performance based on the degree of achievement of M&A motivation.Finally,a comprehensive evaluation of Fosun Pharma’s M&A performance from 2004 to 2020 is conducted,and the degree of realization of its M&A motives at each stage is specifically analyzed.This paper finds through the Fosun Pharma case study with an industry evolution perspective that there are relatively large differences between the performance evaluation results under the event study method and the industry evolution perspective.Although some of Fosun Pharma’s M&A events from 2004 to 2020 are considered unsuccessful under the event study method,they still perform better in the industry evolution perspective and the integrated matrix evaluation.This suggests that some M&A deals may not perform well in the short term,but have more room for development,and also demonstrates that the evaluation of corporate M&A based on the theory of industry evolution is more comprehensive.Based on this,the paper proposes two insights for the changing of thinking in M&A performance evaluation and the next M&A transactions of pharmaceutical industry enterprises for the reference of academic M&A performance research and corporate practice.