Research On The Risk And Control Strategy Of Continuous Merger And Acquisition Of Xinhua Medical Company

In recent years,with the continuous development of the world economic market,more and more companies have turned their attention to mergers and acquisitions.Driven by this large environment,the frequency of M & A and the number of M & A transactions of Chinese enterprises are increasing,and the characteristics of continuous mergers and acquisitions with short intervals and large number of mergers and acquisitions gradually appear.As people's economic level improves,they pay more attention to the quality of life and their own health.China's medical device industry is gradually flourishing,occupying a pivotal position in the international market.Continuous mergers and acquisitions are a kind of "shortcut" for enterprises to develop rapidly.However,things have two sides.Continuous mergers and acquisitions bring development and also bring a series of problems.However,if an enterprise wishes to increase its core competitiveness and achieve multiple profits growth by expanding its scale in a short period of time,it will face more unique risks than other enterprises.The research object of this article is Xinhua Medical,which implements the strategy of continuous mergers and acquisitions,with the intention of rapidly increasing the company's size in a relatively short period of time.After a series of continuous mergers and acquisitions,Xinhua Medical's operational problems have also emerged,so whether Xinhua Medical's leap-forward growth can continue to develop and how to deal with the risks brought by continuous mergers and acquisitions.This article has conducted case studies on this theme.This article is based on the research results of domestic and foreign scholars on continuous mergers and acquisitions,using case analysis methods to select the leading company in the medical device industry-Xinhua Medical.By analyzing Xinhua Medical's M & A events from 2010 to 2018,it summarizes and analyzes the M & A events that occurred during the continuous M & A process of Xinhua Medical.Based on the selection of continuous M & A strategies and the characteristics of the medicaldevice industry,according to the motivation of Xinhua Medical's continuous M & A Through risk analysis,it was found that the risks caused by continuous mergers and acquisitions mainly include the risks caused by payment methods,the risks of synergies,and the risks caused by excessive growth of goodwill.The unique risks formed by enterprises through continuous mergers and acquisitions will not only affect the company's profitability and operating status,but the key is to greatly weaken the company's brand effect and lay a time bomb for the company's future sustainable development.Through the analysis of Xinhua Medical's continuous merger and acquisition process and the analysis of the risk of continuous merger and acquisition,the enlightenment obtained by this article is that the risks buried by the company in order to achieve leapfrog development are beginning to show up.Recommendations and control strategies.With the continuous improvement of the company's core competitiveness,the improvement of the industry environment,and the completion of the company's strategic goal of successful transformation,China's continuous merger and acquisition market will continue to expand,and the trend will form in the future.Some enlightenments from Xinhua Medical and the medical device industry's enterprises that are about to conduct continuous mergers and acquisitions in the future.