Risks And Control Of Medical Device Enterprises Transnational Merge And Acquisitions

With the rapid development of China’s economy,people pay more and more attention to medical health.Strengthening medical construction has become a strong demand of the people.The government has successively released a series of documents such as the "Twelfth Five-Year Plan" for Medical Device Technology Industry,"Outline of National Medical and Health Service System Planning(2015-2020)",and "Made in China 2025" to promote the establishment of "Beautiful China" and "Healthy China" promoted the vigorous development of medical undertakings.With the support of policies,China’s medical device companies have entered a new stage of rapid development,but domestic medical device products are still mainly in the low-end,and homogenization is serious.Compared with similar products in developed countries,there is still a huge gap.In recent years,the volume of cross-border M & A transactions in China’s medical device industry has continued to rise,precisely because domestic medical device companies hope to acquire a large international market and sales platform for high-quality overseas standards through cross-border M & A to improve their technical level and R & D capabilities.Multinational mergers and acquisitions have to deal with the challenges brought about by political risks,legal risks,financial risks,integration risks and other risks,and there is little research literature on the risk control of cross-border mergers and acquisitions of medical device companies.Therefore,this article selects the typical case of cross-border M & A in the medical device industry.Taking the topic of " Risks and Control of Medical Device Enterprises Transnational Merge and Acquisition—Taking Bluesail Medical’s Acquisition of Biosensors International as an Example" Analysis of the risks faced by the international process and the risk response measures taken to provide theoretical and practical implications for the risk control of cross-border M & A of medical device companies.Bluesail Medical transnational M & A Biosensors International is the largest transnational medical device M & A transaction in the history of A shares.It cost 5.895 billion yuan and lasted for 609 days.Finally,it indirectly acquired 93.37% of the shares of Biosensors International.Biosensors International’s valuation and net profit on the eve of the M & A are both greater than Bluesail Medical.This cross-border M & A is also a typical “snake swallow” transaction,and its complexity is worthy of in-depth study.The text is divided into six chapters.The first chapter points out the background and significance of this research,integrates the relevant research results of scholars at home and abroad,and sorts out the logical relationship of the full text through the frame diagram;the second chapter describes The concept of the medical device industry and the development status of cross-border mergers and acquisitions,combed the theoretical basis of the risk of cross-border mergers and acquisitions;Chapter 3 is a case introduction of Bluesail Medical’s cross-border mergers and acquisitions,including the basic information of both companies and the process of mergers,the plan and the motivation of Bluesail Medical’s cross-border mergers and acquisitions;Chapter 4 of this article summarizes the risks in this merger from the three aspects of overall risk,implementation stage risk and later stage risk,including the overall legal and political risks of the merger and acquisition,Pricing risk,financing payment risk in the implementation phase,integration risk in the later stages of mergers and acquisitions and huge goodwill impairment risk.The fifth chapter specifically analyzes the risk control measures taken by Bluesail Medical for the risk points proposed in the fourth chapter.Chapter 6 of this article summarizes the entire case and draws relevant revelations.Through the research on Bluesail Medical’s cross-border M & A Biosensors International,we can find that Bluesail Medical has adopted corresponding risk control measures at each stage of this transaction,successfully expanded the sales network,occupied the international market and achieved low-value consumables.Industrial upgrading to high-value consumables and a substantial increase in operating income.Bluesail Medical also avoided the risks brought by the "snake swallowing" transaction through reasonable financing payment arrangements and its controlling shareholder’s shareholding ratio did not fall but rose.This article aims to help medical device companies better control the risks of cross-border mergers and acquisitions and improve the success rate of cross-border mergers and acquisitions based on the research on the case of Bluesail Medical’s cross-border merger and acquisition.