An Empirical Research Of Predicting Merger & Acquisitions Targets About Pharmaceutical Industry

Acquisition is the market economy is under the background of the development of the product, it is the enterprise outside their own development seek another growth model, is also the important growth leap enterprises to realize the target company way, m&a option is the most successful merger, but also a difficult problem. Beset investors And with the ministry of health and other three ministries push for Chinese medicine industry, the integration offers a rare historic opportunity. With China's capital market continuously deepening reform and rapid development, especially the equity disporting reform listed companies in China since the start of the M&As environment have considerable changes, better achieve enterprise strategic integration and promote optimal allocation of resources, mergers & acquisitions is undoubtedly ideal method, so we need through the perfect and reliable economic analysis method to identify targets, and to establish the enterprise features of the merger of the target enterprise effective prediction model. No matter from M&As square, the target company or investors' point of view, in M&As analyzes the features of the target enterprise to identify potential target company has very important practical significance.On reviewing and summarizing the study of domestic and foreign targets enterprise characteristics after classics literature, this paper expounds the motivation theory, in order to merger by analyzing the reason and find the merger or acquisition target enterprise of corresponding characteristics. Motive this article from the reform of non-tradable shares of the actual conditions, the characteristics of the acquisition target enterprise hypothesis. In the behind of the empirical study, this paper selects is part after share-trading reform of the a-share market, most timeliness 52 house as sample, pharmaceutical listed companies in the corresponding hypotheses, including financial characteristics, constructing the ownership structure, six aspects of 13 indicators of the target enterprise characteristic system.The principal component analysis method, draw the eigenvalue greater than 1 main composition of 5. Use rotation obtained the loading matrix after prediction model. This paper researches believe that less profitable, operation ability of the enterprise are more likely to be poor, but the target enterprise receivables turnover of good corporate but for the enterprise have certain merger attraction:Additional equity expansion ability, growth difference, value undervalued and equity relatively decentralized enterprise more easily become M&A target enterprise. Using binary Logistic regression analysis, the model for the overall coefficient validity test, this model Hosmer-Lemeshow passed the inspection, goodness-of-fit testing predict accuracy back generations have also reached 67.25%, explain that listed merger of medicine model with strong explain ability.