Research On The Value Creation Of Fosun Pharmaceutical Continuous Merger And Acquisition

There are two ways to develop and strengthen the enterprise:one is to realize the endogenous growth through the accumulation of the internal capital;the other is to expand the scale of the capital rapidly through the merger and acquisition.In recent years,with the rapid development of China's capital market,M&A has become an important means of getting enterprises bigger and stronger.In 2015 pharmaceutical industry ranked first in the M&A market,a total of 320 cases of M&A,involving an amount of up to 1,411.01 billion yuan.With the increasing of M&A,the number and frequency of corporate M&A were also significantly increased,which also makes part of the company's M&A show a continuous trend,Continuous M&A has gradually become a hot spot in the study of mergers and acquisitions.Fosun Pharmaceutical and Hengrui medicine are leaders in the pharmaceutical industry,the former depends on continuous M&A to achieve the extensive growth,while the latter relies on their own research and development,but the market reaction and valuation is far lower than that of the Hengrui medicine.Based on this,explore the continuous high growth of epitaxial merger implementation can create value,and continuous mergers and acquisitions there is extension expansion policy,with a view to the pharmaceutical industry how to choose a development strategy,and how to create value to provide some help through extension and expansion strategy.Therefore,this paper chooses Fosun Pharmaceutical as the research object,and compare with Hengrui medicine.First,analyze the value of continuous M&A creation.From the perspective of shareholders,the enterprise value can be divided into market value and intrinsic value,market value with stock price and market capitalization reflect the intrinsic value of the financial index to reflect,from the point of view of profitability,operating capacity,solvency,development ability,selecting 11 indexes,using event study method and principal component analysis,evaluation of Fosun Pharmaceutical we can create value;and comparison of development and Hengrui medicine,the characteristics of evaluation Fosun Pharmaceutical continuous mergers and acquisitions create value.Then,study the existing extension strategy for mergers and acquisitions,starting from the perspective of value chain integration,the synergies in the value chain of various functional activities(procurement,research and development,production,marketing services and other support activities)operation mechanism,selection of integration efficiency index system of 15 indicators to build after the merger,to evaluate after the merger integration efficiency,explore the impact of mergers and acquisitions to achieve the value creation efficiency.Finally,the paper summarizes the value creation path of continuous M&A based on synergy effect.In this paper,Fosun Pharmaceutical as an example,through the comparison of the following conclusions:(1)Fosun Pharmaceutical continuous acquisition of epitaxial growth.(2)Fosun Pharmaceutical has obtained the excess profit in the market through the continuous merger and acquisition,obtains the good performance in the enterprise.(3)compared with the endogenous development,the epitaxial growth of Fosun Pharmaceutical has a wealth diminishing effect.(4)after the merger and acquisition of Fosun pharmaceuticals,the poor performance is the cause of the decline of the wealth effect of the epitaxial high growth value creation.The continuous acquisition strategy effectively,can support the rapid development of enterprises,but to focus on the merger integration,continuous play synergy strategy,so that enterprises can develop continuously,and create greater value for the enterprise.