Research On The Performance Of Chinese Medicine Continious Mergers And Acquistions

Mergers and acquisitions is an effective way for enterprises to achieve rapid expansion,adjust product structure and improve market position.In recent years,with the successive promulgation of national pharmaceutical policies,the pharmaceutical industry has become increasingly competitive,and more and more pharmaceutical enterprises have achieved industrial market concentration through mergers and acquisitions.At the same time,with the increasingly serious problem of population aging and the enhancement of national health awareness,people’s demand for medication is increasing,which brings opportunities for the development and expansion of pharmaceutical enterprises,and the pharmaceutical industry has joined the M&A boom.But will this M&A boom bring value to enterprises?This issue has become a new focus of academic research.China Pharmaceutical acquired several companies in 2017-2019,which attracted widespread attention in the capital market.It is of great significance to select China Pharmaceutical as a case enterprise for research in this paper.This paper first describes the concepts and theoretical basis of continuous M&A,and then comprehensively combs the continuous M&A cases of Chinese medicine from the background of the pharmaceutical industry,the basic situation of the company and the process of continuous M&A,analyzes the motivation of the continuous M&A of Chinese medicine,and finally uses the event study method to analyze the short-term market performance of the continuous M&A of Chinese medicine,uses the financial index method and the economic value added method to evaluate the long-term performance of Chinese medicine,selects the market share,R&D innovation ability and staff quality to analyze the non-financial performance of China Pharmaceutical’s continuous M&A.Through the performance analysis of the above three aspects,we can comprehensively evaluate whether the continuous M&A of China Pharmaceutical has improved the company’s performance.The research results show that the motivation of continuous M&A of China Pharmaceutical is to obtain synergy,expand business types,improve industrial layout and expand enterprise scale.In terms of short-term market performance,investors are not optimistic about the continuous M&A events of China Pharmaceutical,and the continuous M&A activities of China Pharmaceutical failed to bring excess wealth returns to shareholders.In terms of long-term financial performance,as the size of the enterprise expands,the profitability of China Pharmaceutical has been prompted,with good development potential.The operating capacity is poor,and asset management needs to be strengthened.The short-term solvency performance is still good,and the long-term solvency performance is weak.At the same time,the economic value added has always been positive,and continuous mergers and acquisitions have brought positive benefits to the company.From the perspective of non-financial performance,continuous M&A has brought a positive impact on the company and effectively improved the market share,R&D innovation ability and staff quality of Chinese medicine.