Serial M&As Performance Of Fosun Pharma

Recent years, with the rapid development of economy and capital markets, mergers and acquisitions have become an important means for enterprises to become bigger and stronger. Domestic M&As market continues to increase. Chinese M&As market transaction value reached987.4billion yuan in2014. The number of M&As transaction reached3546in the year. With the increasing amount of M&As, companies are more likely to make serial M&As. Zoomlion (SZ000157) made15acquisitions only in2007. Serial acquisitions become a hot issue within domestic scholars.Scholars mainly focus on the performance of serial M&As and the factors of performance. Recent years, some scholars began to study the performance of serial M&As from the perspective of behavior, and mainly focus on the impact of managerial overconfidence and learning behavior in the performance of M&As. Above researches usually use empirical studies, based on the analysis of foreign and domestic serial M&As, some scholars choose financial industry, mechanical manufacturing or specific listed companies for the empirical studies of performance of serial M&As. There is no consistent conclusion because of the market or industry is different, at the same time the company merger and acquisition is different.In this paper, we choose Fosun Pharma as a case to study the performance of serial M&As,unlike most empirical studies, we study the performance of serial M&As through theoretical analysis combined with case study. In this paper, we review and summarize the related studies on the performance M&As, and theory analysis of the Fosun Pharma, we conclude that the serial M&As strategy based on pursuing of synergy and enhancing the competitiveness will bring performance improvement for Fosun Pharma: In the short term, the performance of serial M&As will get positive earnings because of the existence of learning behavior; in the long term, the serial M&As around the health care industry chain will bring financial performance improvement. Afterwards, we choose full samples of M&As made by Fosun Pharma during2004-2013. Cumulative abnormal returns were calculated to analyse the short-term M&A Performance. Financial analysis for Fosun Pharma can be used to verify the effectiveness of its serial M&As strategy.Through the research of Fosun Pharma2004-2013serial M&As performance, we can draw the following conclusions:(1) Fosun Pharma serial M&As in the short-term the wealth effect of acquisition did not appear a decreasing trend, the event window period serial M&As performance better.(2) Fosun pharma serial M&As of long-term financial performance, better than the level of the same industry. According to the principal component analysis method of the long-term financial performance score, found Fosun Pharma serial M&As of long-term performance showed an increasing trend. Fosun pharma serial M&As strategy can support the rapid development of enterprises, serial M&As strategy is effective.