Research On The Financial Risk And Prevention Of Transnational M&A Of Pharmaceutical Enterprises

With the promotion of the seventh m&a wave,transnational m&a is one of the effective ways for enterprises to open the foreign market and re-allocate resources.China's enterprises mainly focus on the manufacturing industry,TMT(technology,media and communication)and consumer retail industry,while there are not many cross-border mergers and acquisitions in the medical and health industry.However,with the aging of the population and the improvement of people's health awareness,the number of cross-border mergers and acquisitions of Chinese pharmaceutical enterprises is directly affected.In this complex economic activity,financial risk runs through the whole process of m&a,and even plays a decisive role in the success of m&a.Therefore,it is of great practical significance to study the financial risk of cross-border m&a of pharmaceutical enterprises.This paper selected fosun Pharma's acquisition of Gland Pharma on October 3,2017 as a case study.Fosun Pharma has a good momentum of development in the pharmaceutical industry and a broad prospect of development,which is of great research significance.Firstly,this paper describes the process of merger and acquisition,analyzes the internal and external environment of merger and acquisition with SWOT model,and believes that fosun Pharma's acquisition and Gland Pharma can quickly enter into the global mainstream market,realize synergies and complement resources and technologies.Secondly,it focuses on the analysis of the financial risk in the m&a process,from the early pricing risk to the financing risk,payment risk and the financial risk in the later integration stage,and USES the fuzzy hierarchical comprehensive evaluation model to evaluate the financial risk of the m&a.The results show that the pricing risk and the financial risk in the integration stage are too high.Against the transnational mergers and acquisitions of financial risk in finally put forward the corresponding precautionary measures,fosun medicine can use intermediaries to help reduce the risk pricing due to information asymmetry,adopt scientific financing means and mode of payment to reduce the management risk of the debt risk and shortage of cash,with the introduction of professionals to solve the low level of earnings risk.It is hoped that the study of this paper can enrich the theoretical basis of cross-border m&a of pharmaceutical enterprises at the present stage,and at the same time provide reference for future cross-border m&a of fosun pharmaceutical and other pharmaceutical enterprises.