The Guangzhou Pharmaceutical Exchange Has Absorbed The Performance Study Of The Merger Of Baiyun Mountain

With the rapid development of global economic integration process, M&A becomes an inevitable choice for companies to develop themselves and do the upstream and downstream integration of resources work, so the convertible merger becomes the most effective way. With increasing demand for health care,the global pharmaceutical industry is developing rapidly in the last decade. Our government has increased investment in medical industry and China is implementing the new health care reform program, which gives greater opportunities to the development of the pharmaceutical industry. On the other hand, the current competition in China's pharmaceutical industry is very fierce, various companies are realizing their own development and transformation breakthrough. The M&A between the pharmaceutical industry has become one of the most important ways to improve the competitiveness of enterprises. So the paper addresses the merger of the pharmaceutical industry research, this research has strong theoretical and practical significance.This article selects the case of the merger between Guangzhou and Baiyunshan Pharmaceutical to study, mainly because the two companies are both listed companies of Guangzhou Pharmaceutical Group, so this merger between the two companies is very representative, and can achieve wide medicine group list as a whole. When analyzed Guangzhou Pharmaceutical merger case, firstly the paper does the research of Guangzhou Pharmaceutical's merger motivations, specific process and solutions.Then the paper analyses the performance of Guangzhou Pharmaceutical, mainly using two evaluation methods. One is the economic value added method, we use it to calculate the company's real value before and after the merger. the other method is data envelopment analysis, we use it to analysis profitability, solvency ability and operational capacity. Finally, we can give the research conclusions and recommendations.Through the in-depth analysis of the case, the paper gets a conclusion. From the economic value-add method, the real value of the business has been greatly improved after the acquisition. From the data envelopment analysis, Guangzhou Pharmaceutical has improved the post-merger profitability and solvency ability, but the operational capabilities still needs to be improved. Companies need to strengthen the managementof costs, establish cost concept, and efficient use of assets. Overall, however, the new Guangzhou Pharmaceutical will become a integrated and large pharmaceutical companies with strong market competitiveness.