| In recent years,the pharmaceutical industry in China has developed rapidly,with a rapid growth in market size,from 1329.4 billion yuan to 1791.9 billion yuan,and has steadily ranked the second largest pharmaceutical market in the world.Compared with developed countries,the structure of China’s pharmaceutical industry is decentralized,with low scale effect and concentration;Most enterprises lack core competitiveness,and their products or business models are easily replicated.As a result,the activity of mergers and acquisitions in China’s pharmaceutical industry has been continuously increasing,and large pharmaceutical companies and listed companies in the industry are competing to layout and accelerate the frequency of mergers and acquisitions in order to expand the market scale and optimize their own structure.Between 2014 and 2021,the number and value of mergers and acquisitions in the medical industry increased by 300% and 400%,respectively.However,the M&A process itself has a large capital demand,and it is difficult to integrate resources after M&A,which poses great risks.Therefore,for pharmaceutical companies with frequent mergers and acquisitions in the industry,how effective are their mergers and acquisitions and whether they have achieved their strategic objectives? This article selects the LBX Pharmacy that experienced multiple consecutive mergers and acquisitions from 2015 to 2021 as the research object,and measures the performance of continuous mergers and acquisitions of the LBX Pharmacy through multiple perspectives and indicators to reflect the impact of continuous mergers and acquisitions on their enterprise value.This article uses literature research,quantitative and qualitative analysis,case analysis,and other methods to study the continuous M&A events of the LBX Pharmacy.It describes in detail the motivations for continuous M&A and the implementation of continuous M&A strategies.It evaluates the value of the LBX Pharmacy after continuous M&A,and combines quantitative and qualitative analysis methods from three dimensions: market reaction,financial effects,and non-financial effects,This article analyzes the performance and existing problems of continuous mergers and acquisitions of the LBX Pharmacy,and puts forward improvement suggestions based on the actual situation of the LBX Pharmacy,providing reference for other drug circulation enterprises to carry out continuous mergers and acquisitions transactions.Through comprehensive evaluation,this article concludes that continuous mergers and acquisitions of the LBX Pharmacy have improved the value of the enterprise,reflected the value creation effect of mergers and acquisitions,and provided impetus for the sustainable development of the enterprise,mainly reflected in: 1.Obtaining competitive advantages.Through continuous mergers and acquisitions,reduce procurement costs and transaction costs,and achieve economies of scale.2.Create synergies.Gain market share and increase operating revenue through business collaboration;In terms of financial coordination,the cost of financing funds for large pharmacies for ordinary people has decreased.In terms of management synergy,the total asset turnover rate of relevant financial indicators is relatively stable,the period expense rate has decreased,and the industry position has been improved.However,after continuous mergers and acquisitions,there are still some indicators that have underperformed,which is due to the existing problems of single payment methods,insufficient integration depth,and excessive frequency of mergers and acquisitions at the LBX Pharmacy.This article proposes improvement suggestions such as adopting diversified payment methods,optimizing capital structure,reducing financial risks,focusing on improving asset quality and efficiency,avoiding excessive M&A expansion,strengthening resource integration after M&A,and giving full play to synergies.These improvement measures can make the value improvement performance of continuous M&A of LBX Pharmacy more obvious and lasting. |
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