Research On Motivation And Risk Of M&A Of Ruikang Pharmaceutical

The number of mergers and acquisitions in China is increasing significantly every year,from 320 in 2015 to 4278 in 2020.These data are enough to reflect that China is joining the ranks of powerful countries in the development of mergers and acquisitions.At present,the current situation of China’s pharmaceutical enterprises is large in number and low in profitability.Therefore,it is urgent to expand the scale of enterprises and improve their innovation ability.After the COVID-19 since 2020,we are more deeply aware of the vital importance of the healthy and orderly development of the pharmaceutical industry to national development and national unity,so how much help M&A can bring to the growth of pharmaceutical enterprises has become an issue we need to think deeply.Taking the M&A of Ruikang pharmaceutical as an example,this paper selects2014-2020 as the research period,summarizes the M&A situation over the years after Ruikang pharmaceutical formulated the national strategy in 2014,combines the motivation of M&A,uses the risk management theory,and starts from the analysis of the enterprise’s financial statements to explore the risks before,during and after the M&A of Ruikang pharmaceutical.Through the research,it is found that in a short period,The M&A of Ruikang pharmaceutical has had a positive effect,and the financial indicators such as profitability and solvency of the enterprise have been significantly improved.However,in the long run,continuous M&A leads to a large outflow of funds,and the utilization rate of funds is low,so it loses its advantage.Through the research on the related risks induced by the M&A motivation of Ruikang pharmaceutical,this paper puts forward some suggestions to avoid risks in the M&A process of pharmaceutical enterprises,hoping to provide some reference for M&A of other enterprises,so as to improve the success rate of M&A.