Research On The Financial Risk Control Of Fosun Pharma's Acquisition Of Gland Pharma

In the context of “going out” and “Belt and Road”,overseas mergers and acquisitions have become hot words.Starting from 2001 to 2015,it reached the peak of M&A transactions in 2016,and gradually became rational and pragmatic after the government introduced the guiding policies in 2017-2018.According to a report issued by PricewaterhouseCoopers,the total amount of M&A transactions in mainland China has continued to decline since 2016.The total transaction amount in 2018 decreased from US$122.5 billion in 2017 to US$94.1 billion,and the value of overseas M&A transactions decreased by 23%.In addition,China’s manufacturing industry plays an important role in the overseas mergers and acquisitions of Chinese companies,and the pharmaceutical manufacturing industry is more concerned with people’s livelihood.Therefore,overseas mergers and acquisitions of pharmaceutical manufacturing industry deserve attention.In the process of mergers and acquisitions,if there is financial risk,it will likely lead to merger failure.Therefore,the financial risks of M&A in the pharmaceutical manufacturing industry need to be further explored.This paper selects the largest case in the history of overseas mergers and acquisitions in pharmaceutical manufacturing,namely,Fosun Pharma’s acquisition of Gland Pharma.This paper analyzes the research results of overseas M&A in China and abroad through the literature research method,and based on this,The plan,motivation and process of the merger were elaborated.The financial risks of each stage of the M&A have been studied in detail,including the M&A preparation stage,the M&A implementation stage and the integration stage.According to the analysis results,combined with the Z value model to make a comprehensive evaluation.It also analyzes the control measures of financial risks when Fosun Pharma acquires Gland Pharma,and evaluates these control measures.Finally,the article draws lessons from the analysis of the financial risk control of the case.This paper expects to further deepen and verify the existing financial risk theory of mergers and acquisitions,and on this basis,understand the problems that Fosun Pharma needs to pay attention to during mergers and acquisitions,so as to reduce the financial risk in the future merger and acquisition process.In addition,we also hope to obtain certain experience and methods through the research on the financial risks of Fosun Pharma’s mergers and acquisitions,and give valuable reference to the overseas M&A activities of Chinese enterprises in the future.