A Study Of The Motivation And Performance Of BY-HEALTH’s Overseas M&A

Since China joined the WTO,the investment environment and economy has significantly improved,which has promoted the development of global mergers and acquisitions.With the expansion of the scale of Chinese enterprises,cross-border mergers and acquisitions have become one of the important ways of foreign investment.In recent years,the health care industry has developed rapidly,not only the market scale has expanded,but also the integration has increaseed.Thus,many companines choose overseas M&A to improve their core competitiveness.This thesis selects By-Health,a leading company in the health care product industry,as the research object.The research method of the thesis is combination of literature review and case analysis.Firstly,the thesis summarized domestic and foreign research literature from the aspects of motivation,influencing factors and performance evaluation methods.Based on the overseas M&A of developing countries,the thesis analyzed the theory of value underestimation,investment inducing factor combination,the synergy and small-scale technology and local technology development theory.Secondly,based on the PEST model,this thesis explained the background and development of the health care industry,the motivations of BY-Health’s overseas M&A turned out to be seeking profit growth,forming an industry chain competitive advantages,and obtaining overseas advanced technology.Third,the event research method,financial indicator analysis method and non-financial indicator analysis method are mainly used for performance evaluation.It is found that in the short term,cross-border M&A has brought positive effects to By-Health’s market value.However,the M&A have brought greater financial risks.As the target company’s business didn’t reach expectations,many financial indicators have deteriorated,which has a negative impact on the profitability and solvency of By-Health.In the long run,companies have expanded the probiotic market achieved business expansion.Three years after M&A,the financial performance of companies have gradually improved.Based on aboved,this thesis draws relevant enlightenment for this case,hoping to provide reference for similar companies in the health care product industry.