The Study On M&A Performance Of Watson Biotechnology Co.,Ltd.

In recent years,to increase investment in the pharmaceutical industry in our country,the good news have also offered opportunities for the development of the industry,at the sametime,the national regulation of product development is more and more strict,prompting many companies began to mergers and acquisitions related to upstream and downstream industry chain.So the research and analysis of biological Watson M&A performance and provide certain reference significance for the pharmaceutical industry mergers and acquisitions.In this paper,after reviewed the related literature and theoretical basis,introduces the background of M&A cases of Watson organisms.The article from the financial performance and non-financial performance analysis of the two big aspects to Watson M&A performance evaluation.Financial performance analysis is presented in this paper,combining with the characteristics of the pharmaceutical industry,choose the financial accounting index,the right window to Watson M&A performance measure.By using event study method to Watson M&A performance analysis found that the company in September 2012 to July 2013 in less than a year's time,the high premium of M&A is not favored by the market,Watson creatures in September 2012 after M&A Dan an 55% stake in pharmaceutical,excess yield trend of relatively stable market,volatility is lesser,in the window period,most of the trading day yield is negative.Market accumulated excess yields in the window period basically is in the negative,and present the downward trend.By Watson biology in recent years the financial indicators of comparative analysis,we can see that Watson biological core business development is relatively stable,but does not bring greater funding,its operating net cash flow is negative,at the same time,Watson biological assets structure there is a certain risk,the asset-liability ratio is higher,there is high solvency risk,it has to do with Watson biological large-scale acquisitions investment are closely related.After three companies mergers and acquisitions in July 2013,the result is not as expected,but the growth of the company in trouble.Simple financial performance analysis has certain limitations,so this paper also uses the non-financial performance analysis method,from the strategic target,innovation ability,market share and company's potential for development of these a few respects to correlation analysis of the non-financial performance,let the reader a deeper understanding of the company's mergers and acquisitions.On the study of the performance at the same time found a series of problems of mergers and acquisitions,such as mergers and acquisitions of target enterprise valuation is too high,before merger integration planning is not reasonable,etc.Before and after the merger and acquisition enterprise should have a clear positioning itself,in different circumstances,enterprises should have different management plan and goal,in this way can the acquisition of resources play incisively and vividly.