Research On The Serial M&As Performance Of Walvax Biotech

Compared with a merger and acquisition behavior,serial M&As reflects a strategic choice of enterprises.In recent years,the competition of listed companies in China is becoming increasingly fierce,the demand for access to resources is also increasing.In this environment,if the company wants to achieve the goal of becoming bigger and stronger,M&A has become an important way.The M&A of pharmaceutical industry is more frequent.The number and the amount of mergers and acquisitions is large.Many pharmaceutical companies also try to build their own strategies through serial M&As.However,"the water that bears the boat is the same that swallows it up".M&A is a "double-edged sword",can the serial M&As truly improve the performance of enterprises?This paper selects Walvax Biotech as the research object,a representative enterprise of biopharmaceutical enterprises in China.In order to understand the macroscopic situation of the industry,this paper introduces the general situation of biopharmaceutical industry and the trend of M&A.Then,based on the microscopic situation of the enterprise,this paper introduce the basic situation of Walvax Biotech.Analyzed by SWOT method,this paper introduce the internal and external environment of Watson's serial M&As.For evaluating serial M&As performance of Walvax Biotech,this paper selects two perspectives-market performance and financial performance.In order to evaluation market performance,this paper uses event study to verify whether Walvax Biotech's serial M&As have a shareholder growth effect.At the same time,in order to evaluate financial performance,this peper selects representative financial indicators.For analysis,this paper uses financial indicators to combine horizontal and vertical contrasts with competitors and industry trends.The conclusions of this paper are as follows:(1)Most of Walvax Biotech's serial M&As did not receive excess returns in the market,and its serial M&As showed a trend of diminishins wealth.(2)Walvax Biotech's financial performance after serial M&As has declined.The reason is that the ability of resource allocation can not keep up with the rapid expansion of the volume after the M&A activity.There is a contradiction between performance and strategic development goals,the contradiction between M&A activity and lagging management,it is difficult to achieve the purpose of serial M&As strategy.The integration effect after serial M&As is bad,and the syn.er.gy needs to be improved.(3)Walvax Biotech's strategic choices have certain problems,the selection of M&A target has not been fully considered,the payment method is relatively simple,risk has not been controlled,and some M&A premiums are too high,which makes the serial M&As performance bad Therefore,the goal of achieving strategic goals and becoming bigger and stronger requires not only a series of mergers and acquisitions,but more importantly,the integration of M&A resources and the coordination of resources in all aspects.