Lepu Medical’s Merger And Acquisition Of Aidekang’s Merger Motivation And Effect Analysis

Under the background of increasing reform of the national medical system and normalized epidemic prevention and control,the country attaches great importance to the development of the pharmaceutical industry,and the public is paying more and more attention to the pharmaceutical industry.With the continuous improvement of the economic level,people’s health needs are increasing.The demand for medical devices is also increasing day by day,and the medical devices market ushered in a period of strong demand growth.The medical device industry has increasingly attracted attention from the capital market and ushered in a wave of merger and acquisition.In the future,merger and acquisition will become an important way to optimize the industrial structure,expand the development scale,and make medical device industry bigger and better.Firstly,this paper introduces the background and development trend of medical mergers and acquisitions,and sorts out the relevant literature on merger motivation and merger performance.Secondly,through the case of Lepu Medical’s merger with Adcom,it introduced the basic situation of the two parties,the motives of mergers and acquisitions and the transaction process,and analyzed the motives and integration of mergers and acquisitions.Thirdly,it analyzes and evaluates the synergistic effect of mergers and acquisitions by using the method of combining financial indicators and non-financial indicators.The differences in performance before and after mergers and acquisitions are compared using the event study method and the entropy weight method.Finally,conclusions are drawn and relevant policy recommendations are put forward.The main conclusions of the study are as follows: First,after the merger and acquisition,the operational capacity of Lepu Medical has been improved,and its industrial competitiveness,market share and operational benefits have been steadily increasing,which means that it has realized a certain financial synergy effect.However,further attention should be paid to the solvency of enterprises.Overall,the merger basically realized synergies.Second,in the short term,M&A has a positive impact on the performance of Lepu Medical,which is reflected in the significantly rising stock price and positive cumulative excess rate of return.Third,from the perspective of long-term performance,after the merger,the operating capacity of Lepu Medical has been improved,the solvency has been reduced,and the profitability has not been improved significantly,which indicates that the merger event is not very significant for the long-term performance of the company.Based on the above research conclusions,this paper suggests that the M &A of medical device enterprises should pay more attention to the synergy effect,the M & A that is in line with the strategic goal can enhance the synergy effect,and the good financial strategy can enhance the synergy effect To further enhance market power,we should pay attention to diversified management,pay attention to the construction of sales network,to further improve the integration of resources,pay attention to optimize the management system,pay attention to enterprise strategic integration.