Research On The Motivation And Performance Of S Company’s Acquisition Of K Company

In recent years,with the increasing aging of the population and the continuous upgrading of people’s concept of healthy consumption,the pharmaceutical industry occupies an increasingly important position in our country’s national economy.In addition,the sudden outbreak of COVID-19 at the end of 2019 has made the pharmaceutical industry receive unprecedented attention.Due to the particularity of the pharmaceutical industry,compared with accumulating capital to achieve endogenous development,many pharmaceutical companies are more inclined to choose mergers and acquisitions,a development measure that can rapidly expand their own size and scale,help them to get high-quality resources,realize economies of scale and expand market advantages.In recent years,the mergers and acquisitions of pharmaceutical companies in our country has been active,and the number of mergers and acquisitions and transaction amounts have frequently broken historical records,but not all mergers and acquisitions are successful,and many mergers and acquisitions of pharmaceutical companies have not achieved the expected results.So by studying the successful case,analyze their motivation for M&A and performance after M&A will help to provide experience and reference for the M&A development of other pharmaceutical companies.This paper mainly adopts the literature research method and case study method to conduct research,and selects the typical merger and acquisition event of the pharmaceutical industries as the research object.This paper firstly introduces the related theories of the basic concepts of enterprise mergers and acquisitions,the motives of mergers and acquisitions and performance evaluation methods.Then it analyzes the development prospect of our country’s pharmaceutical industry and the current situation of mergers and acquisitions,briefly summarizes the two parties in this case,and reviews the merger and acquisition process.Then from the perspectives of external motivation and internal motivation,it analyzes and summarizes the motivation of S company’s M&A activity in detail,and selects the traditional financial index analysis method and factor analysis method to evaluate the performance of enterprise M&A,lastly using EVA analysis as Complementary research.The study found that the acquisition of Company K by Company S was a relatively successful merger event.After the merger,the profitability of the S company has been significantly improved,and the growth ability is relatively good,but there is still a lot of room for improvement in the solvency and operating ability,and Comprehensive financial benefits have improved;the research results of EVA shows that the corporate value of the S company after the merger has improved significantly.Finally,by sorting out the successful experience of S company’s merger and acquisition,it provides relevant enlightenment for other companies: firstly,mergers and acquisitions need to comply with national policies in order to grasp development opportunities;Secondly,mergers and acquisitions need to be in line with the company’s own strategic layout and select suitable targets for mergers and acquisitions;finally,companies need to attach great importance to the integration work after mergers and acquisitions.