A Case Study Of The Consolidation Of China Resources SanJiu And Guilin Tianhe

In recent years,mergers and acquisitions has become an important path for many enterprises to achieve leap-forward development,under the influence of several times of global mergers and acquisitions,the number of mergers and acquisitions in China every year has increased,the scale of them is also escalating.The high elasticityof demand and risk of the pharmaceutical industry makes the pharmaceutical companies cannot resist the mulch-faceted attack with themselves,including foreign pharmaceutical companies;therefore,pharmaceutical companies are increasingly inclined to choose M & A as an expansion model.But for the pharmaceutical industry,how the effect of mergers and acquisitions,the industry has not formed a unified view.Based on the theory of M & A and M & A performance,this paper analyzes the of M & A activity of China resource sanjiu and Guilin tianhe.Then,the performance evaluation of M & A is carried out from the aspects of operating performance.According to the combination of traditional financial indicators,EVA and non-financial indicators,the results of this M & A are judged synthetically and finally the author will put forward her own suggestions.The main work and conclusions of this paper are as follows:(1)we analyze the M & A activity of the mergers and acquisitions from China's strategic objectives,The integration in good condition.(2)Through the analysis of traditional financial indicators,from four horizontal and vertical aspects of profitability,growth ability,solvency and operational capacity of China Resources sanjiu,the results can be found fluctuating.(3)by bringing ina value indicators as EVA,combined with the characteristics of the industry and the enterprises,and determine the EVA adjustment items and capital costs,from the perspective of corporate value analysis of China Resources sanjiu,you can find EVA indicators in the year of acquisition increased significantly then it experienced a decline,because the pharmaceutical industry is having a supply side reformation.Overall,from the perspective of performance evaluation,China Resources sanjiu's acquisition is successful.