Yiyi Premium Mergers And Acquisitions Baixiang Driving Factors And Performance Research

There are large number of pharmaceutical companies in china,but most are small and medium-sized enterprises with homogeneous products and low profits.Under the influence of the new medical reform and national series of industrial policies,the various industry standards are proposed and updated on the management of pharmaceutical companies so that many pharmaceutical companies are into a bottleneck in the development.Based on this situation,since the new medical reform in 2009,many pharmaceutical companies have started to implement mergers and acquisitions in order to integrate high-quality resources,achieve economies of scale and enhance their competitiveness.While the scale of mergers and acquisitions in the pharmaceutical industry continues to grow,the phenomenon of "high premiums" appearing in the pharmaceutical industry cannot be ignored.With the rise of the trend of M & A in our country,many listed companies are overly pursuing to expand the scale of enterprises to M&A with blindness.With the frequent occurrence of "high premium" phenomenon in M&A of medical enterprises,the proposition of merger premium and business performance has aroused great concern in academia,but there is no unified conclusion about the relationship between the two.Based on the existing theory of M&A,this paper studies the common phenomenon of high premium M & A in pharmaceutical industry.By using the case analysis method and taking the time dimension and case typicality into account,this paper selects the highest premium case in the pharmaceutical industry in 2013 that Yi Bai acquired Baixiang with 55 times the premium to study.According to this case,we observed the driving force of high premiums,and evaluate of the performance of this M&A,and then draw a conclusion,make reasonable proposals to enrich the theory of premium M&A.The main part of the paper is the analysis of the driving factors and performance evaluation of Yibai M&A Baixiang.The premium-driven analysis was carried out in three aspects,namely,the characteristics of the light assets of the pharmaceutical industry,the valuation of M&A targets and the strategic merger and acquisition incentives of Yibai.For the performance evaluation of this premium merger,taking the time dimension into consideration,short-term and long-term evaluations were conducted.The short-term evaluation selected the event research method based on stock price volatility,long-term adopted the financial comprehensive evaluation model method based on factor analysis,and also introduced the strategic perspective of the synergy effect performance evaluation,more comprehensively reveal the relationship between the driving factors and performance of the merger and acquisition.,enrich this performance evaluation.On the evaluation of strategic synergies,quantitative indicators were extracted from the three dimensions of operating,management,and financial synergy to enhance the operability of the evaluation.The results of the performance evaluation found that Yibai's acquisition did not reach expectations.Based on investor confidence,short-term financial performance is positive,but long-term financial performance is not as expected,even worse than before.Based on the synergy effects of merger and acquisition strategic motives,the integration of operations,management,and finance is not ideal and the synergy effect is not as expected.Based on the lack of long-term performance of this acquisition,the author drew lessons from the unreasonable M&A valuation and M&A integration,and put forward reasonable suggestions in order to improve the research on the premium mergers and acquisitions in the pharmaceutical industry.