Research On The Performance Of LEPU Medical Continuous M&A From The Long-Term And Short-Term Perspective

Since the 1950 s,China has made a major breakthrough in the modernization of medical equipment.Starting from low-end products,they have gradually gained the right to speak in the market.With the continuous improvement of independent innovation level,many high-end brands have completed the introduction and replacement.In the booming development of domestic medical device industry,many enterprises have achieved success through continuous mergers and acquisitions,but there are also some enterprises can not effectively integrate with the acquirer,facing severe challenges.LEPU Medical is a company focused on the production of high-quality therapeutic equipment and equipment,and has been committed to the research and development of cardiovascular and cerebrovascular drugs since 2013.Through continuous acquisitions,the company has become a diversified medical organization with four business areas of medical devices,drugs,health services and new health products.This paper takes LEPU Medicine as the target,in-depth study of its long-term acquisition performance characteristics,and on this basis,for other companies to reference and summary.Since LEPU Medical went public,it has been growing through mergers and acquisitions to become a platform enterprise of the whole industry chain of cardiovascular and cerebrovascular.Therefore,this paper will deeply explore the motivation and performance of LEPU Medical’s continuous mergers and acquisitions.First of all,this paper will summarize the practice and research results to lay a foundation for further discussion.Secondly,this paper will clarify the growth of the field of therapeutic instruments,case selection factors and corporate development,and interpret the driving force of LEPU Medical’s continued purchase;Finally,this paper will discuss how LEPU Medical achieves sustainable development through the extension of M&A to improve its performance.By applying event study method and entropy weight method,we can evaluate the effect of continuous M&A from short-term and long-term perspectives,and summarize its important role in enterprise business growth,so as to provide effective M&A strategies for other enterprises.Research shows that although LEPU Medical in the process of merger and acquisition also appeared a short performance decline,but its overall market response performance is good.Continuous mergers and acquisitions not only greatly increased the asset scale of the enterprise,but also increased the operating income and net profit,but also brought some sequelae.Firstly,the rapid rise of expenses during the period led to the contraction of net profit,large goodwill caused the decrease of the turnover efficiency of total assets,and the huge debt burden led to the high financial risk of the enterprise.In this paper,various factors affecting M&A performance are discussed,including the selection of target enterprises,financing channels,payment,M&A integration and so on.This paper puts forward four countermeasures and enlightenment in order to achieve the strategic goal of M&A.Specifically,it aims to set reasonable M&A targets,expand payment channels,strengthen M&A integration and improve corporate governance mechanism.In the future,LEPU Medical should focus on the integration of resources within the group to bring synergies into full play,and at the same time control financial risks.