A Study On The Performance Of Continuous Mergers And Acquisitions From The Perspective Of Industrial Chain

With the continuous development of China’s capital market,the adjustment and upgrading of advanced industries,and the steady progress of state-owned enterprise reform,mergers and acquisitions have become an important measure of enterprise strategic transformation and expansion at a time when the new and old order of industrial development has been replaced.The pharmaceutical industry,as a strategic emerging industry with a focus on the development of China,is experiencing an upsurge in mergers and acquisitions.The combination of extensive expansion and connotation extension of continuous mergers and acquisitions has become the only way for many pharmaceutical enterprises to break through industry barriers and enhance their competitive advantage.This article takes China Resources Sanjiu Pharmaceutical Co.,Ltd.as a case enterprise,and takes the industrial chain as a research perspective to deeply explore its continuous M&A history from 2010 to 2020.It also introduces industry chain theory,resource based theory,transaction cost theory,and synergy theory to analyze the motivation of China Resources Sanjiu’s continuous M&A.Based on theoretical analysis,the article establishes a comprehensive M&A performance evaluation system combining financial and non-financial indicators.When evaluating financial performance of enterprises,the event study method is used to analyze the short-term impact of continuous mergers and acquisitions on enterprise performance from the perspective of the industrial chain,and the factor analysis method is used to analyze the long-term impact of continuous mergers and acquisitions on enterprise performance from the perspective of the industrial chain.It mainly classifies performance indicators into four factors: corporate profitability,debt paying ability,operational ability,and growth ability.It is analyzed by calculating various segmentation factors,overall performance scores,and industry rankings for China Resources 39 consecutive mergers and acquisitions.At the same time,this paper introduces the synergy effect of knowledge capital to evaluate non-financial performance of continuous mergers and acquisitions.Integrate financial performance and non-financial performance,and conduct performance evaluation and analysis based on the company’s overall strategy and integration measures for continuous mergers and acquisitions.Through analysis,the article finds that from the perspective of the industrial chain,the short-term performance of China Resources 39 consecutive M&As has shown an upward trend,bringing some wealth value to the enterprise.However,in terms of long-term performance,China Resources 39 consecutive M&As have not performed well.At the same time,continuous M&As have also brought good non-financial performance to the enterprise,not only achieving human capital synergy,market capital synergy,technological capital synergy,and infrastructure capital synergy,Through organizational learning and experience summary,we also adhere to the "brand innovation" dual wheel drive and create a "consumer medical" dual terminal collaborative platform,Integrated big health industry chain.Therefore,from the perspective of the industrial chain,the article conducts an in-depth analysis of the overall process of China Resources 39’s continuous M&A for decades,summarizes the path to improve the performance of China Resources 39’s continuous M&A,and explores its advantageous measures for value creation.Including strategic planning,early layout of enterprise mergers and acquisitions,and internal and external linkage to improve drug innovation output;Establish a professional team to go deep into the target enterprise and establish a risk management cycle to control the entire process;Set up diversified financing and payment methods,and attach importance to internal governance of the company during the common period;Strengthen the allocation and integration of resources after mergers and acquisitions,and efficiently achieve synergies in enterprise mergers and acquisitions.I hope to provide inspiration and suggestions for many enterprises engaged in mergers and acquisitions.