A Study On Enterprise Valuation Methods In Merger And Acquisition Of Pharmaceutical Industry

With the rapid development of the domestic economy and the continuous improvement of the capital market,merger and acquisition activities show a rapid development trend in the scope of the industry and the number of mergers and acquisitions.Merger and acquisition and reorganization have become one of the important business means for enterprises to expand capital and enhance competitiveness.Influenced by the economic environment and driven by national policies,China's pharmaceutical industry has witnessed an extremely active m&a market since 2013,with prominent industry integration.According to the statistics of zero2 ipo research center,256 m&a transactions were completed in China's pharmaceutical industry in 2018.However,looking at the m&a transactions over the years,many m&a cases finally failed.At present,many m&a transactions are priced according to the asset appraisal results,and the accuracy of the target enterprise valuation largely determines the success or failure of the transaction.Therefore,the selection and application of assessment methods that have a great impact on the assessment results undoubtedly become the focus of attention of all parties involved in the transaction,which is also the focus of this paper.From the point of view of pharmaceutical merger and acquisition,this paper focuses on the evaluation method of enterprise value in merger and acquisition.Firstly,this paper reviews relevant literature,elaborates on the research results of value assessment at home and abroad and relevant theories,and analyzes the basic characteristics of the pharmaceutical industry and the status quo of industry mergers and acquisitions,laying a foundation for further in-depth research.Then,it briefly introduces the traditional enterprise value evaluation methods in China,and makes a statistical analysis of the application of the traditional evaluation methods in mergers and acquisitions of pharmaceutical enterprises.On this basis,it analyzes the limitations of the traditional evaluation methods in detail: it does not reflect the value added by mergers and acquisitions activities to enterprises.Therefore,in order to solve this problem,this paper redefines the value connotation of enterprises in m & a: the value of enterprises in m & a activities should include enterprise intrinsic value and enterprise option value,thus puts forward the evaluation model of m & a enterprise value,and analyzes the factors to be considered in the application of this model.Finally,the value evaluation model is applied to a specific case of merger and acquisition of pharmaceutical enterprises,which shows the specific application of the value evaluation model of merger and acquisition of enterprises in detail and verifies the effectiveness of the method,thus providing a useful reference for the study of valuation of merger and acquisition of enterprises.