Research On Motivation And Performance Of Mergers And Acquisitions Of A Company In Medical Device Industry

In recent years,there has been a gradual increase in M&A in China’s medical device industry,but whether M&A can have a positive impact on a company is extremely dependent on the attributes of the industry in which it operates,so it is important to profile a particular industry.M&A is one of the most effective and quickest ways to address these issues,helping companies to break through business ceilings,graft on high technology and capture highpotential market segments.The ability to achieve positive performance is a key factor in the success of an M&A.Therefore,an objective evaluation of the performance of an M&A is not only theoretical but also of great practical importance.Based on the above background,this thesis adopts the literature analysis method and case study method to select the case of Company A’s M&A of Company J.By analysing the motivation of M&A,exploring the mechanism that influences the performance of Company A’s M&A,evaluating the performance of the case company and obtaining the key points for optimising the performance of M&A,it is hoped that it can serve as a reference for relevant companies.The case study found that the main motivations for Company A’s M&A of Company J were: finding new profit growth points,enhancing corporate value,expanding brand awareness,increasing market share,and sharing resources to complement each other.After the successful integration of the M&A,Company A’s financial performance and EVA were significantly improved.This indicates that Company A’s M&A was generally successful,that the M&A drivers were realised and that the company’s value creation capabilities were significantly enhanced.Further study of the case study found that:(1)Company A improved its financial position by reducing costs through M&A;(2)Company A achieved increased revenue and profitability by restructuring its business after M&A;and(3)Company A’s management efficiency was optimised through increased R&D costs per employee and improved organisational management.Based on the above case study results and relevant theoretical analysis,this thesis obtains the following research conclusions:(1)M&A performance improvement mainly stems from: cost reduction and efficiency enhancement through synergy;revenue enhancement through business structure integration;talent enhancement through increased R&D staff;and management efficiency enhancement through improved organisational system.(2)The Company should also make a number of efforts in financial synergy,operational synergy and management synergy to obtain synergistic effects.The financial synergy effect is reflected in the reduction of costs and expenses,the operational synergy effect is reflected in the increase of revenue and profitability,and the management synergy effect is reflected in the increase of R&D expenses per employee and the improvement of organisational efficiency.