Research On Financial Risk Control Of Merger And Acquisition Of JZT Pharmaceutical Enterprises

In the administration of the running and manufacturing of the pharmaceutical companies,financial affairs,a major ingredient of companies' mergers,run through the whole process of the merger and influence its result a lot as well.In particular,in the determination of fair value of the target companies by through investigation before the merger,the fund raising and payment during the merger and the effective integration after it,the processing mode of the financial risks determine the success and failure of the merger for a pharmaceutical company,which proves that financial risk analysis is essential in the merger.Any failure to correctly judge the potential risks faced by companies and the failure to adopt proper measures might bring about financial setbacks and then merger risks.In the study,this paper involves such research methods as document review,inductive generalization,mathematical modeling and case study.After the literature research,this paper first clarifies the concepts related to company merger,taking the example of company A,whose assessment value is the highest in the successful bidding of JZT pharmaceutical merger,generalizing that the risks involved in this merger include pricing,fund raising,payment and integrating,analyzing the driving cause of financial risks.Besides,in line with the basic theories of merger financial risks,paper builds up the indicator system for financial risk assessment and the fuzzy synthetic evaluation model to evaluate this merger.Finally,the paper summarizes the precaution against pricing risks,fund raising risks and payment risks for pharmaceutical companies and their resolutions,offering the advice about the strategy of integrating risk control afterwards.In the merger of pharmaceutical companies,there are financial risks everywhere.It is necessary to analyze and research the financial risks during the merger to lower the financial risks.This paper concentrates on the value assessment of risks of the target company,the fund raising risks,the payment risks and the integrating risks afterwards,which really determine the financial risks for the pharmaceutical companies.After the analyzing of merger theories and the assessment of the financial risk of company A in the JZT pharmaceutical merger,this paper,combining the current state of financial risk for pharmaceutical companies in China,holds that the merger should build comprehensive precautions in light of the value assessment of target company,merger fund raising risks,payment risks and the integration risks afterwards together.