The Research On SH Pharmaceutical Holding Co.,LTD's Performance Of Continued M&A

With the rapid development of China's economy,the increasing number of enterprises constantly carve up market share,which makes the market competition more and more fierce.Compared with other industries,the pressure of integration and upgrading faced by the pharmaceutical industry forces pharmaceutical enterprises to be more active in M&A.By the end of 2018,there were 437 M&A events,with the transaction scale reaching USD 19769 million.Pharmaceutical enterprises regard M&A as an important means to compete for market share,and the continuous M&A behavior is increasingly common.However,can M&A create value for pharmaceutical enterprises?Is it synergy effect or waste of resources after resource integration?The key point of analyzing this problem is how to evaluate the performance of continuous M&A scientifically.In this paper,SH Pharmaceutical Holding co.,LTD is selected as the research sample.Case study and event study are used to analyze and evaluate the short-term and long-term performance of SH Pharmaceutical Holding co.LTD continuous M&A,and suggestions are put forward based on the analysis results.This paper is divided into five chapters:the 1st chapter is the introduction,introducing the research background and significance,combing the relevant research results at home and abroad based on the research ideas and methods,summarizing the research innovation and shortcomings.The 2nd chapter is the concept definition and theoretical basis,mainly defines the related concepts of M&A,continuous M&A performance,lists the motivation theory of enterprises' continuous M&A,and introduces the methods of evaluating the long-term and short-term M&A performance respectively.The 3rd chapter is the case introduction of SH Pharmaceutical Holding co.,LTD continuous M&A,mainly including the introduction of China's pharmaceutical industry,the course of SH Pharmaceutical Holding co.,LTD's continuous M&A,the motivation and characteristics of its continuous M&A.The 4th chapter is the core part of this paper.It mainly analyzes the short-term and long-term performance of SH Pharmaceutical Holding co.,LTD continuous M&A,and evaluates the value creation of M&A to the company from two time dimensions.The 5th chapter is the conclusion and enlightenment of this paperThrough the research,it is found that the motivation of SH Pharmaceutical Holding co.,LTD to carry out continuous M&A is driven by many aspects,and M&A develops around the whole industry chain.Continuous M&A brings improvement to SH Pharmaceutical Holding co.,LTD 's short-term performance,in which:the M&A events with relatively small total transaction value have better M&A performance,and the M&A targets have better short-term performance to the M&A events of upstream enterprises in the industrial chain.However,because the speed of M&A is too fast and the efficiency of subsequent integration is not high,the positive effect of continuous M&A om SH Pharmaceutical Holding co.,LTD's long-term performance is not obvious.This paper also puts forward suggestions,including the choices of the acquired party and the adjustment of valuation methods.The author hopes that the study can shed light on the continuous mergers and acquisitions in the same industry.