Research On Target Company Selection And Performance Of Pharmaceutical Mergers And Acquisitions

Mergers and acquisitions(M&A)have become an important means of resource allocation among modern enterprises and external corporate governance.With the rapid increase in the number and scale of M&A by pharmaceutical enterprises,M&A in the pharmaceutical industry has become an important part of M&A by Chinese enterprises,promoting the adjustment of industrial structure.Before the implementation of mergers and acquisitions,carries on the system of scientific research is the key factor to realize M&A performance optimization,the selection and the main and side corresponds to the target company to become the primary problem,decide whether or not a M&A and M&A performance can be fulfilled successfully,as a result,the impact of research on the performance of different M&A target companies has important theoretical and practical significance.In view of this,this article to review and summarize the previous scholars on the basis of research results,with Jingfeng Pharmaceutical and Yifan Pharmaceutical merger cases as the research object,using the accounting index method,event study method,Z index model,descriptive statistics,the method of combining the overall analysis of the pharmaceutical industry mergers and acquisitions and the present situation of target selection,after the introduction of case study,this paper compares and analyzes mainly aimed at Jingfeng Pharmaceutical and Yifan Pharmaceutical M&A,target company,three years before and after the merger financial and market performance a thorough comparative analysis of four aspects:Using the theories of efficiency,information and window of opportunity hypothesis,this paper explores the selection of target companies for merger and acquisition and the influence of merger and acquisition on the performance of pharmaceutical enterprises.The study found that both the overall industry and individual cases reached a consistent conclusion,that is,mergers and acquisitions in the short term rapidly improve enterprise performance,but in the long term,different types of target companies will have a significant impact on the long-term performance of mergers and acquisitions,the choice of target companies in the same industry M&A performance is better than the choice of non-target companies in the same industry M&A performance.Finally,based on the above research conclusions,this paper believes that enterprises should select target companies in the same industry in combination with their overall development strategy when making M&A decisions,and the key factor to improve M&A performance is to rationally arrange financing channels and strengthen in-process risk control.