Case Analysis On Serial M&As Of Fosun Pharma

China is the world's second largest pharmaceutical market.But the enterprise distribution of China is not reasonable.The number of pharmaceutical company is large.However,most companies are small,and their respective market share is very low.Compared with foreign pharmaceutical company,domestic pharmaceutical company is uncompetitive in many important areas.Such small and scattered situation is not propitious to medical resources integration and overall development of the industry.The State Council has promulgated a number of policies to promote the integration of the pharmaceutical industry in recent years.And the pharmaceutical industry sets off a wave of mergers and acquisitions.Fosun is representative in the pharmaceutical industry.After listed in 1998,Fosun takes the road of mergers and acquisitions.And it has made a lot of success.It used to engage in chemical reagents,instrumentation and electronic products,but now it has the whole industry chain of pharmaceutical industry.Its registered capital used to be 150 million yuan,but now its market value is 65 billion.Its total assets have increased from 642 million yuan to 35.33 billion;Its operating income has increased from 345 million yuan to 12.03 billion.This paper attempts to analyze Fosun,s successful experience in mergers and acquisitions.This paper selects continuous merger integration of Fosun as case study subject,and uses literatures research,financial indicators and comparative analysis research methods to investigative it.First,the paper introduces the basic situation of Fosun,its development history and present situation.This paper reviews the cases of mergers and acquisitions of Fosun from 1999 to 2014.Its M & A activity was primarily around four areas: establishing pharmaceutical distribution network,expanding product chain,strengthening health services,and implementing globalization strategy.Secondly,this paper analyzes the motives of continuous mergers and acquisitions,M & A strategy,financing strategy,and performance evaluation of the acquisitions.This paper finds that its financial performance performed well.Through this case study,this paper draws the following conclusions: The company who wants to implement continuous M & strategy should pay attention to the circle of capital chain;Seeking diversification on the basis of specialization is a good way to achieve synergies;By keeping and motivating the merged enterprise outstanding management team,a company can reduce integration risk.M & A Enterprises can achieve a win-win situation by providing funds,channels,technology,and other services to merged enterprises.