Study On Continuous M&A Event's Target And Performance Of Valvax Biotechnology Co.

M&A is one kind of popular development strategy,which is better than the Endogenous Growth in many managers' points.The managements are fully convinced that M&A would save more time-cost than Endogenous Growth.For the past few years,it has been a trend that turn independence M&A events into continuous M&A events,especially in the high tech industry.The department of the government has issued an inventive policy for M&A encouragement.Meanwhile the characteristics of high tech industry are high tech,high invest,high risks and high earnings and high time-cost.This paper makes a theoretical review on the motivation and performance analysis of continuous M&A.Consider to the industry characteristics,inventive policy and the typical case of the enterprise itself,this paper chooses Valvax's continuous M & A as a study case.First,we described the process of the case,while we summarized the motivations.Secondly,this paper analyzed the performance from financial performance and non-financial performance.Specifically,it included analysis of the financial indicators,the market reaction,the synergy integration,and the risk control and technology promotion.We choose a company in the similar industry to less the influence of external risk.Finally,we compared its performance with targets to find that after continuous M&A,Valvax Biotechnology Co.can achieve part of the motivations,such as the formation of synergy,the development of strategic objectives,the enhancement of operational capability,and the technical improvement.But it can't be ignored that the efficiency of capital use and the ability to pay down the debt is low,the effective risk control and supervision mechanism is loosed,the CAR has been less and less,the integration of enterprises and synergy effect is not timely.This paper has come up with several advices from the three aspects of the decision setting stage,the implementation stage and the integration stage.We wish that though the analysis of this paper,we can come up with some solid advice for more high tech companies industry.