| In recent years,the macroeconomic situation has been depressed,and the growth rate of the industry has gradually declined.In such an economic context,how to save costs to face the fierce competition in the market has become a difficult problem.Like other industries,the development of traditional Chinese medicine manufacturing enterprises has also fallen into a deadlock.In addition,in recent years,the health care reform government has increased the supervision of low drug prices,so the profits of the traditional Chinese medicine industry have been greatly affected.For traditional Chinese medicine enterprises,if the industrial chain is monopolized by other enterprises,it loses competitiveness,and may even become food for others,and is annexed by giant enterprises in the market.If we want to solve the competitive pressure in the industrial chain,it will bring opportunities for the survival of small and medium-sized enterprises to expand the upstream and downstream industrial chain on the basis of their core business.For a long time,the concentration of Chinese traditional medicine industry is not high and its distribution is dispersed,which limits the development of enterprises.For this reason,government departments have issued many policies to encourage Chinese traditional medicine enterprises to merge and reorganize.In 2018,the amount of mergers and acquisitions of Chinese traditional medicine manufacturing enterprises reached 65.554 billion yuan,the number of mergers and acquisitions was 89,and the amount of mergers and acquisitions increased by about 22.20% compared with the same period last year.Peak time.Strategic layout of the whole industrial chain has become the first choice of many enterprises.Layout along the industrial chain upstream and downstream brings scale effect to enterprises,reduces transaction costs,exerts synergistic effect and improves their core competitiveness.However,we find that mergers and acquisitions are not simple mergers and acquisitions.Mergers and acquisitions usually have certain risks.In recent years,there have also been cases of failed mergers and acquisitions in some countries,such as Huarun 39,Huayuan Pharmaceutical and other enterprises.Domestic enterprises that innovate the whole industrial chain do not have the conditions of merger and acquisition of the whole industrial chain.They just regard the whole industrial chain as the only "life-saving straw" that must be grasped,which ultimately leads to the aggravation of their own burden,which is counterproductive.In order to analyze the effect of M&A in the whole industry chain of Chinese traditional medicine industry,this paper takes Chinese traditional medicine industry as an example,through consulting the relevant literature at home and abroad,and on the basis of the four theoretical foundations,uses event study method and financial index method to analyze the economic effect of M&A in the whole industry chain of Chinese traditional medicine,and puts forward its own suggestions for M&A in the whole industry chain of Chinese traditional medicine and related industries.The results of this study show that:(1)M&A in the whole industrial chain is an effective way for enterprises to expand the industrial chain;and(2)M&A in the whole industrial chain is not a panacea to solve the dilemma.Based on the above research results,this paper suggests:(1)based on themselves,choose the matching target enterprises;(2)pay attention to the integration after merger and acquisition,and strengthen resource sharing.Third,the government should strengthen market supervision and create a fair competition environment.This paper hopes that through the case study of Chinese traditional medicine,it can provide reference for other Chinese traditional medicine manufacturing enterprises that intend to merge and acquisition in the whole industry chain,and also provide some theoretical support for the regulatory authorities to improve the market system of Chinese traditional medicine manufacturing. |
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