Applied Research On Valuation Of M&A In Pharmaceutical Industry

As a very important basis in the process of M & a pricing,whether the enterprise value evaluation is reasonable or not will play a key role in the process.Compared with the existing income approach and asset based approach,the market approach shows more advantages.Specifically,on the basis of considering the comprehensive quality of the enterprise,it reflects the supply and demand information of the M & a market,and thus leads to a more comprehensive enterprise value.However,it should be pointed out that there are many restrictions in the practical application of the market law,including effective market,transparent information disclosure and active trading market.With China's capital market becoming more and more perfect,M & A activities become more and more active,and the application base of the market law already has,and the scope of application will be more and more extensive.Specific to the pharmaceutical industry,its high technology and high risk characteristics determine that investors have higher quality requirements for its evaluation results.Because of the market with more subjective judgment in the future implementation of the assessment,the method was not applied to the industry.Enhancing the objective and scientific level of the value multiplier and looking for comparable companies with higher similarity to enhance the fairness of the valuation results is an effective way to enhance the market valuation approval.Therefore,it is necessary for the pharmaceutical industry to study in depth the market valuation methods corresponding to it.By analyzing the case of mergers and acquisitions in the pharmaceutical industry,we find the problems involved in the valuation process of the market law,and then come up with an improvement plan.According to the specific characteristics of the industry,this article attempts to use principal component analysis,entropy method and closeness degree method to study how to select the value multiplier and comparable companies,and draw some countermeasures and suggestions.This paper tries to find out how to select the value multiplier and the method of three degree of reference.Finally,the market law can be better applied to the pharmaceutical industry.The findings show that the evaluation results obtained in the M & A cases of the improved market valuation model are more realistic and comprehensive,and are more consistent with the actual transaction price.Because of the pharmaceutical industry including chemistry,biology pharmacy,traditional Chinese medicine and medical equipment business and five sub sectors,we learned in the correlation analysis value and enterprise value,value corresponding to different sub sectors of different types,consider two factors: Industry and company in the selection process,and then get the best fit value multiplier the.At the same time,through entropy and close to the principle of screening comparable companies,help to assess institutions to distinguish the market law on the specific level of mergers and acquisitions case.