Research On M&A Performance Of Medical Device Industry In China

With the rapid development of the market economy and the rapid increase in the number of M&A transactions,M&A has evolved into one of the main ways for enterprises to achieve rapid development,expand their scale of operations,and increase market share.As an important industry of China's medical system,the medical device industry plays a vital role in promoting China's economic development.With the continuous improvement of the national economy,the demand for the medical device market has become more and more vigorous,and the medical device industry has experienced rapid development in the past decade.According to the "13th Five-Year Plan for Medical Device Technology Innovation" issued by the General Office of the Ministry of Science and Technology,it is stated: "Accelerate the transformation of the medical device industry as a whole to innovation-driven development,improve the innovation chain of medical device research and development,and expand the market for domestically-made innovative medical device products.Occupation rate,leading the transformation of medical model,and promoting the leap-forward development of China's medical device industry."This paper studies the M&A performance of listed companies in China's medical device industry,analyzes the specific reasons for its performance changes,and proposes corresponding countermeasures for the corresponding problems.This paper chooses listed companies as the research object because its financial information and transaction information disclosure are relatively comprehensive and accurate.This paper takes the change of the overall benefit of the enterprise caused by the merger and acquisition behavior as the object of evaluation.The specific content is divided into the following six chapters:The first chapter is an introduction.It mainly introduces the research background and significance,research ideas and framework of the article,as well as pointing out the expected contributions and shortcomings of this paper.The second chapter is a literature review.From the two aspects of the M&A performance theory and the M&A performance research method,the existing domestic and foreign literatures are sorted out.(1)The impact of M&A on corporate performance has not yet formed a unified conclusion,and some research results show that M&A can improve the enterprise.Performance,there are also research results that mergers and acquisitions reduce corporate performance,and research results show that the impact of mergers and acquisitions on corporate performance is not very obvious;(2)research methods of merger performance usually use event research and financial indicators.The third chapter is the theoretical basis.It mainly elaborates from two parts: the motivation theory of M&A and the evaluation method of M&A performance.This paper believes that mergers and acquisitions can bring certain business synergies and financial synergies to enterprises,which can expand the market share of enterprises and enhance the market power of enterprises.The fourth chapter analyzes the status quo of China's medical device industry.By analyzing the macro environment of the market and the development of the industry,it is concluded that the future development potential of China's medical device market is huge,market demand is strong,and industry integration is obvious.Chapter 5 Lepu Medical Devices Co.,Ltd.M&A Case Performance Analysis.By analyzing the case of Lepu Medical's acquisition of Ningbo Bingyi Investment Co.,Ltd.,the following conclusions are drawn:(1)The event analysis method evaluates the short-term performance change obviously and has a good cumulative excess return rate;(2)the analysis of its long-term performance evaluation,Using the financial indicator method to obtain the M&A event has weakened the company's solvency,which has a certain improvement effect on the company's operational capability,and has a certain reduction in the company's profitability,which has a positive effect on the company's growth ability.The non-financial indicator performance analysis shows that M&A has a positive effect on the company's non-financial indicator performance changes.In general,mergers and acquisitions have a positive effect on the short-term performance of the company,the capital market reflects the obvious effect;its long-term performance is not outstanding,and the performance of financial indicators and non-financial indicators are different.Chapter ? summarizes,suggests and deficiencies.Based on the previous analysis,three suggestions are proposed:(1)M&A should choose target areas and enterprises with core competitiveness;(2)Reasonable choice of payment methods to reduce the risk of mergers and acquisitions;(3)Resource integration after mergers and acquisitions.The main contributions of this paper are as follows:(1)This paper selects the medical equipment as a sunrise industry to carry out specific industry analysis,and elaborates on the macro environment,development status and M&A motivation of the industry,which is very strong for people to understand the industry in detail.(2)This paper takes Lepu Medical as a typical representative of continuous mergers and acquisitions,and analyzes the long-term and short-term performance of mergers and acquisitions by event analysis method and financial index method respectively,which has reference significance for the performance analysis of M&A of listed companies in medical device industry.