Research On The Performance Evaluation Of Fosun Pharma’s Cross-border Acquisition Of Gland Pharma

Under the background of deepening reform of the pharmaceutical industry and aging market,the national demand for the pharmaceutical industry has increased,which inevitably increases competition in the industry.In order to quickly occupy market share and integrate advantageous resources,many pharmaceutical companies choose mergers and acquisitions to compete for customer resources at home and abroad.However,the results of this study are not entirely consistent,and the study finds that some mergers and acquisitions can bring economic benefits to enterprises,while others generate economic risks.Therefore,this paper selects Fosun Pharma’s cross-border M&A activities in 2017 as the research object to analyze the performance before and after the M&A event.Firstly,the background,significance and methods of the research are introduced,and the relevant theories of M&A and performance are explained.Secondly,it examines how the pharmaceutical industry developed at that time,introduces the general situation of the merger and acquisition parties,and explains the reasons for the merger and acquisition and the merger process.Then,using the event research method to analyze the company’s short-term performance,and using SPSS single-sample test to test whether it is significant,it is found that Fosun Pharma has achieved positive returns in the short term.Using the efficacy coefficient method to analyze the long-term performance of the company,it can be seen that Fosun Pharma’s financial performance and integration ability after the merger have been improved,and the feedback from market investors is also positive,but there are some problems;It also qualitatively analyzes the non-financial performance of enterprises,selects three aspects: resource integration,technology research and development and market share,and finds that enterprises perform well in non-financial performance.Then,according to the performance evaluation results,the problems arising in the M&A process of Fosun Pharma were analyzed,and it was found that there were problems such as the Indian government’s obstruction caused by tension,the high amount of capital payment increased the pressure of debt repayment,and the inventory backlog led to low asset utilization.Finally,countermeasures are put forward,such as actively exerting domestic and foreign policy orientation,choosing appropriate payment methods,reducing inventory backlogs,accelerating asset turnover,grafting resources and technology to improve integration capabilities,and putting forward reasonable suggestions for other companies planning cross-border M&A.