The Financial Integration Research Of China Pharmaceutical Industry Merge And Acquisition

Merges and acquisitions are the important ways for a company to accumulate assets faster, expand resource base, explore the synergistic effect of resources, expand production scale and enhance competitive in the market. Along with the increasing quantities and expense, pharmaceutical companies’ merging becomes a hot topic recently, including a lot of top companies with certain merging. However, having the ability to control merged company just is the half achievement for the merger and acquisitions activities. Furthermore, effective integration also is very important. According to the research result of merging from both domestic and abroad scholars, it has lower successful rate. It has difference root causes but the most important thing is the integration after merging. It is a key factor to a successful merging especially for the finance integration. Finding a good method to solve finance problems during merging is very important.Both companies, the China Meheco Co.,Ltd. and Topfond pharmaceutical Limited by Share Ltd., are belong to China General Technology (Group) Holding. Co., Ltd. They have the relationship between the upstream industry and the downstream industry. Also, they are competitors with each other. In 2013, the China Meheco Co.,Ltd. started merging with the Topfond pharmaceutical Limited by Share Ltd. It aimed to enable the whole pharmaceutical industry chain and enhance the overall strength of China Meheco Co.,Ltd. This paper studies the finance index of China Meheco Co.,Ltd. by comparing with before and after merging, finds the down trend of profitability, operation ability, growth capability and difference result comparing with merging targets. And then it exposes the finance integration problems after merging, such as difference finance management goals, problems of finance management system, difference of accounting system problems and so on. Finally, by consolidating with the strength of China Meheco Co.,Ltd., the paper successfully proposes the corresponding optimization strategy.