Research On The Motivation And Consequences Of Boya Biotech’s Establishment Of Industrial M&A Funds

With the increasingly fierce market competition at home and abroad,traditional mergers and acquisitions activities have been unable to meet the needs of business expansion and enhancement of industry competitiveness.In addition,in recent years,corporate IPOs have become more stringent,which has a greater impact on private equity funds.Based on this,listed companies and private equity institutions are actively seeking cooperation.After a series of practical explorations,the M&A model of the two parties cooperating to establish industrial M&A funds has begun to develop in my country.According to relevant statistics,the proportion of my country’s M&A funds participating in M&A activities is far lower than that of capitalist countries such as the United States,and even lower than that of developing countries such as India and Russia.It can be seen that the development prospects of industrial M&A funds in my country are broad.Therefore,it is especially important to study the merger and acquisition model of listed companies and private equity institutions in cooperation to establish funds,analyze its motivations and economic consequences,and summarize experience and lessons in a timely manner.This paper chooses Boya Biology as a case.Based on combing domestic and foreign literature and related theories,this paper systematically studies the situation of setting up industrial merger and acquisition fund jointly with private equity institutions,and focuses on analyzing the motivation and economic consequences of setting up industrial merger and acquisition fund.First of all,it introduces the case overview,introduces the basic situation of the company and the industry,and the process of setting up industrial M&A funds,and analyzes the motivations for the establishment of industrial M&A funds.It is found that improving the company’s industrial chain layout,enhancing corporate competitiveness,and meeting the requirements of shareholders’ rights are its main goals.Secondly,it analyzes the economic consequences of setting up M&A fund from the performance and risk aspects.This article draws the following conclusions,in terms of performance analysis,after the company established an industrial M&A fund,it carried out investment activities around the company’s development strategy,enriched the product structure,and improved the layout of the upstream and downstream industrial chain;the capital market showed a positive market response,and investors The company’s development prospects have good expectations,and the four major financial capabilities have also shown different degrees of improvement;the company’s economic value-added has increased year by year,and the value creation speed and creative ability have been continuously improved.At the same time,it has achieved in operation,finance,sales,and research and development.The good synergy effect in terms of aspects,the competitiveness of enterprises has been continuously enhanced.In terms of risk analysis,the establishment of an industrial M&A fund by the company has reduced the risk of mergers and acquisitions and the risk of project integration failure to a certain extent.However,the fund also exposed some problems in the process of operation,such as the risk of project selection and the unclear exit link of the fund,which also reminds the listed companies that they need to determine the key work of each stage in advance,make a good response plan and avoid risks when they set up the merger and acquisition fund.Finally,this article proposes the following three countermeasures based on the above research conclusions: firstly,the company needs to clarify its own development strategy,determine the investment direction around the strategy,and rely on the PE institution to conduct preliminary investigations on potential target companies in a timely manner;secondly,strengthen post-investment management Activity link;finally,pay attention to the fund’s exit stage.Since listed companies and other fund partners pursue different interests,conflicts may easily occur during the exit stage,and there are greater risks.Listed companies need to take more precautions when setting up industrial M&A funds.improved.