A Case Study On BoYa Merging Xin Bai

In recent years,there are more and more mergers and acquisitions transactions in China’s pharmaceutical industry.At the same time,the industry buyout fund set up by a listed company and PE have been widely used in our stock market investment.This model can broaden the listing company financing channels and reduce the risk of mergers and acquisitions.However,the model also has many problems such as insider dealing,conflicts of interest between participants,difficulty in post-investment management,and so on,which is worthy of further study.This paper takes BoYa Merging XinBai as a research object,and makes a case study on the motivations of the transaction,the operation and risk of this model,and the performance of the transaction.First of all,the paper summarizes the domestic and foreign scholars ’theory about,M & A and buyout funds,the research of this paper based on the existing theory.Secondly,the paper introduces the background of M&A,the market environment of buyout fund,the participants of this transaction.And then,the paper describe the process of the transaction.Thirdly,the paper analysis the case from three aspects: the motivation of M&A,the operation and risk of industry buyout fund,and the performance of this M&A.After analysis,the article argues that BoYa set up buyout fund for the purpose of improving the industrial layout,and take good ues of its advantages,such as more flexible and less risky.Then,the paper analysises the operation of this buyout fund,and put forward a series of problems about the operation such as accounting irregularities,principal-agent problem,and insider-dealing.In addition,the paper evaluated the performance of this M&A.Finally,according to the analysis,the paper gives some suggestions about how to operate buyout funds efficiently and how to make the buyout fund become more compliant in the future.