Research On The Performance Of Serial Mergers And Acquisitions In Pharmaceutical Industry

It is well known that mergers and acquisitions are effective ways to make enterprises bigger and stronger. In recent years, with rapid growth of the capital market in China and the improvement of its function and mechanism, more and more domestic enterprises hope that by the way of mergers and acquisitions to achieve rapid growth, quickly become bigger and stronger and to improve its market competitiveness. Enterprises which run in pharmaceutical industry are of course also hope through mergers and acquisitions to boost their competitiveness.In recent years, with the national policies and documents which are published to help the pharmaceutical industry enterprises become bigger and stronger and to enhance their international competitiveness, the passion of the pharmaceutical industry enterprises for mergers and acquisitions continued rising, more and more companies have been involved in M&As, the number of mergers and acquisitions and the size of mergers and acquisitions are growing very rapid. Through the study we found that the M&As of pharmaceutical industry enterprises presents the characteristic of the serial M&As, which named that enterprises mergers more than one company over a period of time. Although the pharmaceutical industry mergers and acquisitions activities is in full swing, use the M&As to making the enterprise bigger and stronger is the final aim of the enterprises but not complete the M&As behavior. Therefore, it is critical to evaluate the performance of serial M&As of the pharmaceutical industry enterprises scientifically and reasonably. However, there are few studies about the performance of serial M&As all over the world, it is contrast with the more and more common phenomenon of serial M&As starkly. Some existing studies using events study and financial analysis to estimate the performance of serial M&As, but their conclusions are partial and not accurate, so their are some new requirements for our studies and evaluation about the performance of serial M&As are put forward.So based on the background of this study above, this paper will select the pharmaceutical industry as the research object which happens serial M&As. At the first of this paper, we will introduce the background and the significance of the study and the process of the paper, and we will review the literature which are used, and will introduce some related theories which will be used in this paper. Then, based on the detailed analysis of present situation of the development, competition and mergers and acquisitions of pharmaceutical industry in China, we will summarize the motivation of our country medicine industry enterprises to carry out the serial M&As. The content above will lay a good foundation for the research of this paper then. Next, in this paper, we will start with the motivation of serial M&As of the pharmaceutical industry, combined with the characteristics of the pharmaceutical industry and serial M&As and follow some certain principles, I will try my best to choose some evaluation indexes which will affect the performance of companies in long time and will determine the weights of evaluation indexes and design the scoring criteria and scoring method of the indexes to build a mergers and acquisitions performance evaluation system which is suitable for China’s pharmaceutical industry. This system try to evaluate the performance of pharmaceutical enterprises’ serial M&As in a perspective of comprehensive and try to make up the defects of existing researches. In this paper, I will also select A company which in the pharmaceutical industry and analyze it’s serial M&As specifically.We will use the evaluation system which is built above to evaluate its performance of mergers and acquisitions activities. In the end, this paper will summarize the study briefly and point out the deficiencies of the paper.