Performance Analysis Of Cross-Border M&A In Health Products Industry Based On EVA

With the improvement of people's living standards and the enhancement of health awareness,the development of China's health care products industry has ushered in a golden age.However,due to the consumption concept “imported products-admiring” of health care products,people are more inclined to purchase overseas health care products.As a result,many health care products companies that have grown up from China have achieved leapfrog development through the mergers and acquisitions of well-known overseas health care products companies.Whether this wave of crossborder mergers and acquisitions in the health care industry has achieved the expected M&A effect has not been studied in the academic world,and has not yet formed a unified view.In order to study the results of cross-border mergers and acquisitions in the health care industry,and to provide reference for cross-border mergers and acquisitions in the future health care industry,this paper uses case analysis method,taking the case that Biostime merged and acquired Swisse as an example,and using EVA indicators to research and analysis the M&A performance after Biostime merged and acquired Swisse.This thesis begins with the theory of cross-border M&A and M&A performance,introduces and compares several common methods for evaluating M&A performance,and illustrates the superiority of EVA index method for evaluating M&A performance and the specific formula for calculating EVA indicators.Then,it analyzes the development status of China's health care products industry,summarizes the industry's cross-border M&A profiles and characteristics,and then conducts a detailed analysis and research on the cross-border M&A performance of the health care products industry by the case of Biostime merged and acquired Swisse.In the case,the background information of two parties of M&A is introduced,and M&A motivation as well as M&A process is declared.Finally,the combination of EVA indicators and traditional financial indicators are used,and compared with the traditional performance evaluation indicators,the M&A performance after Biostime merged and acquired Swisse is evaluated,the research conclusions are summarized and the research suggestions are put forward.The purpose of this thesis is to study the performance of cross-border M&A in the health care industry,reveal the M&A performance results of the cross-border M&A trend of the health care products industry,analyze the factors affecting the M&A performance of the health care products industry,and actively promote the M&A performance of health care products enterprises.The main work and conclusions of this thesis are as follows:(1)Introduce case merger and acquisition information from M&A background,M&A motivation and M&A process of the case that Biostime merged and acquired Swisse.(2)Using traditional financial indicators,analyze and study the corporate performance before and after Biostime merged and acquired Swisse in the aspects of profitability,operational capability,solvency and development capability.(3)According to the EVA index calculation formula,determine the net profit after tax,total capital and weighted average cost of capital respectively,and finally obtain the EVA value.(4)By comparing the EVA value with the traditional performance evaluation index,the author finds that the company's value is in a state of continuous decline after Biostime merged and acquired Swisse,and draws the consultation that the case of Biostime merged and acquired Swisse across-border failed to continuously create corporate value for shareholders.