| The CRO enterprise is a commercial organization that provides professional services to pharmaceutical enterprises and R&D organizations or institutions in the process of drug development.After years of development,CRO industry has become an indispensable part of the new drug R&D industry chain.Although Chinese CRO industry started late,the speed of development has been maintained at a relatively high level.Compared with large international CRO enterprises,domestic CRO enterprises are weak in scale and competitiveness.Tigermed Consulting is the first CRO company listed in A shares in China.It is a typical representative of CRO industry.What problems will it encounter in the process of merger and acquisition of Frontage Laboratories.Can management,finance,and management synergy be achieved?Is the purpose of M&A achieved?This paper studies the synergetic effect of transnational M&A of CRO enterprises with the example of Tigermed Consulting cross-border merger and acquisition of Frontage Laboratories,in order to answer the above questions.Based on the theory of synergetic effect and efficiency,this paper firstly analyzes the motivation of Tigermed Consulting M&A on the basis of combing the literature of transnational M&A and the evaluation of M&A effect of CRO enterprises.Secondly,based on the event study method to evaluate the short-term effect of Tigermed M&A Frontage,and then to evaluate the management,finance and management synergy effect of Tigermed M&A by means of financial index analysis,respectively.In addition,factor analysis was used to evaluate the comprehensive effect of Tiger medicine,then combined with non-financial indicators to further analyze the synergy effect of Tigermed Consulting M&A.Finally,the paper puts forward some suggestions to improve the effect of transnational merger and acquisition of CRO enterprises.The results of this study are as follows:(1)Tigermed Consulting is in the leading position in the domestic CRO industry,and the funds are quite sufficient(overfund raising when listed);The main reason of Tigermed Consulting M&A is to expand the industrial chain,acquire key technologies,open up the American market,and promote the strategy of globalization.(2)the short-term effect of Tigermed Consulting M&A is evaluated based on event study.It was found that CAR decreased obviously and the market reaction was negative.(3)the comprehensive effect of Tiger medicine was evaluated based on factor analysis,and the comprehensive performance was improved after M&A.(4)based on financial index analysis,financial analysis was used to evaluate the finance of Frontage.Management,management synergies are evaluated separately.In the aspect of financial synergy,the current ratio is obviously reduced,the efficiency of capital utilization is improved,the effect of tax saving is brought into being,and in the aspect of management synergy,the rate of management expenses decreases,the rate of assets turnover increases,and the efficiency of asset use increases.In the aspect of business synergy,the gross profit rate and operating income growth rate decreased and then rebounded,but the operation synergy effect was not significant.(5)Based on the non-financial index method,the synergistic effect of Tiger Pharmaceutical was evaluated.The market share was increased,the industrial chain was expanded,and the corporate culture was integrated.To sum up,the M&A consolidated Tigermed's leading position in China,basically achieved the purpose of M&A,improved the profitability,comprehensive competitiveness and international influence of listed companies,and achieved better synergy effect.The conclusion of this paper has certain reference significance for CRO enterprises to formulate transnational M&A strategy and improve M&A synergistic effect. |
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