Motivation And Performance Analysis Of Meinian Health’s Acquisition Of Ciming Physical Examination

With the increasingly fierce market environment,mergers and acquisitions have become an important way to expand their own scale,enhance core competitiveness,and achieve strategic development goals.In recent years,mergers and acquisitions between Chinese enterprises have continued to increase and their forms have gradually diversified.Adopt horizontal or vertical,or diversified mergers and acquisitions,the ultimate purpose is to promote the further rapid development of enterprises through effective mergers and acquisitions.Although this form of mergers and acquisitions has been very common in the business activities of enterprises,because each company’s market environment,the process of mergers and acquisitions,the means used,etc.are different,each merger and acquisition behavior has its own characteristics,For some typical M & A cases,the experience of M & A is worthy of reference for other companies.China’s private health checkup industry has begun to develop since 2004.With the improvement of residents’ health concepts,health consumption has started to upgrade,and the health checkup industry has developed rapidly.The country has also continued to deepen the implementation of the "Healthy China" strategy,and has successively introduced various Pound policy to support the development of private medical care.With the continuous improvement of relevant laws and regulations,China’s private health checkup industry is facing unprecedented development and challenges.The proportion of private medical examinations in the field of medical examinations is constantly increasing,the coverage is gradually expanding,and competition in the industry is becoming increasingly fierce.Many companies have chosen to enhance their competitiveness through mergers and acquisitions.The giants and the mergers and acquisitions among them have aroused the attention of many enterprises and investors,and also brought a profound impact on the change in the pattern of the entire private medical examination field.This article uses a combination of theory and case to explore the research object of this article.In the part of theoretical analysis,the domestic and foreign literatures are reviewed and combed first,and the synergy effect theory,market power theory,and scale effect theory are used to analyze the motivation of mergers and acquisitions from a theoretical perspective.In the case analysis section,this article selects the case of Meinian Health M & A Ciming Medical Examination as the object of analysis.First,it introduces the specific situation of the case,including the status of the entireindustry and the development trend.A general review of the entire M & A process,followed by an analysis of the reasons for the merger between the two parties,combining multiple aspects,and analyzing the financial performance and non-financial performance to determine whether the M & A has achieved results and further explain the reasons for the change in company performance,The last,this article draw the conclusion and inspiration of this case.Through research,this article finds that the main reasons for the health checkup of Meinian Health’s acquisition of Ciming are to obtain the resources of the other high-end brand to enhance profitability and development capabilities,increase market share and seize the leading position in the industry,reduce operating costs to obtain scale effects,and solve the long-standing problems of both parties.The competition in the industry and the opportunity provided by the merger and acquisition party’s IPO failure at the time.In addition,in terms of performance,although this merger and acquisition brought some pressure to Meinian Health,the profit and development ability after the merger and acquisition have made great improvements.Through this strong merger and acquisition,Meinian Health is rapidly growing.Improved market share and successfully won the throne of the industry leader,and perfected its own brand hierarchy and through this gentle way to avoid competition between the two parties in the same industry.Overall,this article believes that the positive impact of this merger and acquisition is more obvious.This article draws the following enlightenment: First,it is necessary to rationally select the acquisition target while seizing the opportunity of the acquisition.Secondly,it is necessary to formulate a flexible transaction plan according to the specific circumstances of the transaction,which will help the smooth progress of mergers and acquisitions.Third,we must attach importance to the integration of the resources of the companies after the merger and acquisition,which can maximize the role of mergers and acquisitions,I hope the enterprise that participates in merger and acquisition activity can learn something from it.