Research On M&a Performance Of L Company Under The "PE+Listed Company" Model

Our country’s economy is moving towards high-quality development.How to obtain sufficient market share in the fiercely competitive market to become bigger and stronger,and enhance the core competitiveness of companies,is a challenge faced by many company managers.Since 2011,a new type of merger and acquisition model has emerged in the Chinese market for the first time: the "PE+listed company" model.This model is relatively novel in China,using leverage to acquire the target company,that is,introducing a third-party PE party to bear the financial pressure of the merger and bear the risks of the merger.The "PE+listed company" model of mergers and acquisitions has gradually received social attention.This article takes L Company,a representative enterprise in the pharmaceutical industry,as the case object to study mergers and acquisitions and their performance under the "PE+listed company" model.Firstly,the research background and significance were introduced,relevant research at home and abroad was reviewed,and the research content and methods were described.Secondly,the relevant theories of mergers and acquisitions were elaborated.Once again,based on the introduction of major participants such as L Company,the motivation and process of the "PE+listed company" model merger and acquisition were analyzed.Then,focus on evaluating the performance of mergers and acquisitions.In the aspect of short-term market effect,the event study method is used to link the signal theory of stock price with the short-term stock price changes before and after M&A and analyze them,and it is concluded that M&A has improved the stock price of L Company in the short term;In terms of long-term financial performance,financial indicators are used for analysis,and it is found that the improvement effect of debt paying ability and operating ability is relatively significant in the year of merger and acquisition and the following year,but the impact shows a decreasing trend,with the smallest impact on profitability and a more significant impact on development ability in the short term.The economic value added method and entropy method were also used to analyze the comprehensive performance of the enterprise,and the evaluation results obtained from both methods are basically consistent with the results obtained from the four major financial capability indicators.In addition,in terms of non-financial performance,synergy effects were used to analyze the benefits of mergers and acquisitions under the "PE+listed company" model.On this basis,the reasons for the changes in L Company’s performance were mainly analyzed from the perspective of the impact path of mergers and acquisitions on performance.Finally,based on case analysis,targeted optimization suggestions were proposed for the acquiring party,PE party,acquired party,and regulatory party.This article supplements the case studies of mergers and acquisitions under the "PE+listed companies" model to a certain extent,and can also enrich the research on synergistic effects.It is hoped that it can provide reference and reference for other enterprises to adopt this merger and acquisition model and improve merger performance.