Case Analysis On Blue Sail Medical's Cross-border Acquisition Of Biosensors International

Cross-border mergers and acquisitions are one of the important ways for companies to grow bigger and stronger.Through cross-border mergers and acquisitions,companies can obtain high-quality assets and advanced technology to enhance their international competitiveness.With the improvement of opening up in China and the in-depth implementation of the Belt and Road Initiative,the awareness of Chinese companies to "go global" has continued to increase,and cross-border mergers and acquisitions have become increasingly active.However,as the enthusiasm for cross-border mergers and acquisitions increasing,various merger risks have also emerged,and the failures of cross-border mergers and acquisitions of Chinese enterprises have frequently appeared.Therefore,how to formulate M&A plans scientifically,prevent cross-border M&A risks and improve the success rate of cross-border M&A is particularly important in cross-border M&A of Chinese enterprises.This article takes the largest cross-border M&A event in China' s medical device industry,Blue Sail Medical' s acquisition of Biosensors International as a case.At the beginning of this article,it introduces the basic situation,merger plans and procedures of both parties to the merger and acquisition,and analyzes the motivations and risks of this cross-border merger,and found that Blue Sail Medical mainly faces target selection risk,valuation risk,goodwill impairment risk,control change risk and financing risk in cross-border M&A.On this basis,it explains in detail the M&A strategy of Blue Sail Medical in cross-border M&A,and evaluates M&A performance from three aspects: market effect,strategic effect and financial effect.The study found that,first,Blue Sail Medical obtained high-quality M&A targets through cooperation with industrial investment funds.As the controlling shareholder of the acquired party,Biosensors International,CITICPE optimized its equity structure and improved its corporate governance before the merger,which enhanced the value of the company's mergers and acquisitions.Second,in this cross-border M&A,Bluesail Medical appointed its major shareholder,Bluesail Investment,to invest in Biosensors International in advance,which stabilized its control rights and reduced the risk of cross-border mergers and acquisitions.Third,Blue Sail Medical reduced financial pressure and debt risk by designing differentiated pricing and payment solutions.In general,this acquisition provided a strong impetus for the sustainable development of Bluesail Medical,which enhanced the corporate value of Bluesail Medical,and achieved positive effects.Through case analysis,four points are obtained:companies should choose the right target of mergers and acquisitions according to their own development strategies,through the innovation of M & a strategy,take the way of early equity to stabilize their control,formulate pricing and payment strategies to reduce financing pressure flexibly,and strengthen cooperation between companies and industrial investment funds to enhance the value of M&A,etc.