A Case Study Of Walwax's M & A At A High Premium

In recent years,compared with the endogenous growth model,many enterprises prefer the external strategic expansion,M & A is one of them.Under the common influence of national policy guidance and the rapid development of the industry itself,the M & A activities of Listed Companies in China continue to be hot,especially the number of M & A in the pharmaceutical industry,second only to the TMT industry.The frequent phenomenon of high premium gradually attracts more and more attention.It is worth understanding,studying and exploring the motivation behind this overestimation and how it will be realized later.Taking the merger and acquisition of WALWAX as an example,this paper briefly describes the general situation of biopharmaceutical industry and the basic information of both sides of the merger and acquisition.Based on the logical starting point of the merger and acquisition,this paper analyzes the whole process of the merger and acquisition of WALWAX by Shandongshijie,Ningbopuno and Shengtai(putian)as the important agents for a long time.On the basis of the special background,this paper continues to explore the causes of high premium from the perspective of value assessment methods,management attitudes and probable benefit transmission.In order to further understand the relationship between M & A premium and value creation,event study method,financial index method are mainly selected to evaluate the short-term and long-term performance of WALWAX after M & A in the analysis method.From the perspective of event research method,we can see that the cumulative excess return rate shows a fluctuating rising state in the whole event window period;in addition,we can evaluate its long-term effect from three aspects: performance commitment fulfillment,financial indicators,intrinsic value of shares,subsequent measurement of goodwill,which show that the specific indicators are optimistic and worried.Research shows that there are still some problems in the process of M & A at a high premium and the management after M & A.In response to these problems,this paper puts forward comprehensive and objective suggestions from four aspects: corporate risk and value evaluation,payment form of M & A,integration after M & A,industry supervision and disclosure,in order to make it more rational in the process of M & A at a high premium and provide analysis and reference for other enterprises in the pharmaceutical industry.