Analysis On The Motivation And Synergistic Effect Of Ruiyuan In Ningbo Acquired By Dirui Medical

In today’s unpredictable economic situation,the living environment of all walks of life has become increasingly difficult.In order to occupy a favorable position in the fierce market competition,the main bodies of various industries also increasingly resort to mergers and acquisitions to enhance their market competitiveness and seek development.With the adjustment of economic structure and the guidance of national industrial policy,mergers and acquisitions are becoming more and more important choices for enterprises to transform and seek development.In addition,the improvement of people’s living standard brought by the development of economic level makes the pharmaceutical industry have a broader market prospect,which also promotes the merger and acquisition of pharmaceutical enterprises to a large extent.Mergers and acquisitions are often carried out by enterprises to achieve the goals of expanding the company scale and improving the overall competitiveness.However,due to the influence of various factors and the existence of a variety of risks,mergers and acquisitions often fail to develop according to the expected plan,and thus fail to achieve the synergy and achieve the set merger and acquisition goals.With the continuous development of the pharmaceutical industry,the scale and amount of mergers and acquisitions in the industry are getting larger and larger,which also means the risks are getting larger and larger.Therefore,any link of mergers and acquisitions needs to be strictly controlled.This paper starts with the research background and purpose,and then sorts out the related theories and literature review at home and abroad.Then,the paper analyzes the background,development process and motivation of m&a in the whole pharmaceutical industry.After finish the background and theoretical foil,then choose Dirui medical merger case as an example,this paper introduces the basic situation,the merger and acquisition activity both the content of the background and process of mergers and acquisitions,etc,with derrick medical nearly four years of financial data and relevant information as the basis,through the event study methods such as,financial index,economic value added,focusing on the reason of the merger and acquisition activity and synergistic effect for combing after m&a,analysis whether m&a and achieve the expected effect for the impact of health.It is found that although some financial indicators are not good after m&a,the overall effect after m&a is still positive.Finally,on the basis of the case study,based on the industry environment and referring to the relevant data of the industry,this paper puts forward relevant Suggestions on the key points of merger and acquisition activities,hoping to provide some references for enterprises with merger and acquisition intention in the same subdivided fields in the industry.