The Research Of Motivation And Performance On Industrial Capital Mergers And Acquisitions Of Listed Company

With the slowdown of macroeconomic and surrounding the uncertainty of industrialadjustment, national policies encourage enterprises to merger and reorganization, whichare driving forces in Chinese M&A market and enter a “new era of M&A” with full of newopportunities. By the driving of the growing demand and competitive pressure, listedcompanies play a leading role in industry mergers and acquisitions. In order to obtainmerger synergies, enhance market competitiveness and diversify operations, many listedcompanies in China participate in the deal of M&A, which have effectively improved theefficiency of the business and create new value. According to the research of M&A expertsdomestic and abroad, for a lot of listed companies, M&A is the most effective way to growquickly achieving industrial upgrading and technological innovation in capital markets.The industry of medical apparatus and instruments is the basis of Healthcare.Compared with the pharmaceutical industry, Chinese medical apparatus and instrumentsmarket emerged quite late but is developing very fast. There are a lot of small andmedium-sized enterprises and the market competition is fierce. Besides, the complicatedproduct structure and high technical barriers have become the menace and challenges inthe development of listed companies. Companies in medical apparatus and instrumentsindustry generally develop by denotative expansion to achieve endogenous growth.Chinese listed companies have set off a wave of M&A in capital market in recent years,and a lot of mergers and acquisitions cases were accumulated for studies. The developmenthistory of large medical equipment companies domestic and abroad has proved that M&Ais an important method to grow up.Starting with the M&A theory, this paper expatiates the theoretic analyses results ofmerger motivation and performance. On the basis of theoretic analyses, the paper takemedical apparatus and instruments industry as an example, describes the characteristicsand the current state of M&A development, industry regulation and policy. In addition, thispaper analyses the competition pattern of medical apparatus and instruments industry inChina, and highlights the M&A operation of Chinese listed company, with the summary ofM&A issues. Case analysis is used to study and discuss the development of ShinvaMedical Instruments, the lever enterprise in the industry. The fourth part of this paper focuson the industrial M&A of Shinva Medical Instruments from2009to2013, illustrate the motivation and the process of mergers and acquisitions, use financial index method andcapital value method to evaluate the M&A effect, revealing the case of Shinva M&A ofmedical instruments industry enlightenment.Through the study of medical instrument industry mergers and acquisitions and thedevelopment of Shinva, this paper puts forward some suggestions for China’s medicalinstruments industry mergers and acquisitions. Listed companies in medical instrumentsindustry should set up clear M&A strategies, implement capital resources rationally,optimize the industrial structure and enhance the merger integration ability. In addition,financial risks should be monitored closely under strict regulations, and the connectionbetween the industrial mergers and capital market need to be built by the listed companiesbecause of the corporate valuation and value discovery. The value of this paper is that allthe suggestions from the analysis of medical instruments industry and the case of ShinvaM&A will provide a positive guiding significance to the industrial development.