Analysis Of Enterprise Value Creation Of Continuous Mergers And Acquisitions Of CR 39 From The Perspective Of Resource Orchestration

In recent years,under a series of policy requirements issued by the state,enterprises in China’s pharmaceutical industry have carried out industrial transformation and upgrading,and have achieved technological breakthroughs in many subdivisions to continuously meet consumer needs.Due to the industry’s dependence on technology,brand,and cost driven,and the current situation of small and scattered enterprises,long R&D cycle and high R&D costs,the time cost of enterprises relying only on their own research to achieve technological breakthroughs,brand building,and the formation of economies of scale effect increases.Therefore,frequent mergers and acquisitions have become a shortcut for domestic pharmaceutical companies to enhance their core competitiveness.So how can companies achieve value creation through continuous mergers and acquisitions? Existing research mostly explores this topic from static factors such as M&A experience,M&A performance,and M&A transaction methods,and rarely explores the correlation between each M&A.From the perspective of resource orchestration,based on the strategic goals of the enterprise,this paper attempts to analyze the value creation process of China Resources Sanjiu’s continuous mergers and acquisitions from 2011 to 2022,aiming to explore the intention behind each merger and acquisition,and what resource orchestration behaviors CR Sanjiu carries out for enterprise creation.Based on the theory of resource orchestration and synergy theory,this paper defines the scope of enterprise value creation,and reviews and summarizes the previous literature on value creation,continuous mergers and acquisitions and resource orchestration.With the support of theory,this paper summarizes the 19 M&A activities carried out by CR Sanjiu,divides them into two stages according to the characteristics of M&A,namely the focused M&A stage and the diversified M&A stage,and analyzes the objects of each stage of M&A of CR Sanjiu from the three perspectives of resource structuring,resource restructuring and resource leverage,and summarizes the resource advantages brought by the acquired party to CR Sanjiu.Summarize the connections between mergers and acquisitions according to the transformation of the company’s development strategy;Analyze how CR Sanjiu arranges and repositions the resources of the acquired parties according to the strategic change,so that the mergers and acquisitions can exert synergies and create value for the enterprise.Finally,qualitative and quantitative analysis of value creation effect is carried out based on the financial indicators of business,brand,leadership position and EVA economic added value.The study finds that the continuous M&A behavior of enterprises is not independent of each other,but selects M&A targets according to the adjustment of corporate strategy.In order to achieve the purpose of continuous M&A,enterprises should have the ability to adjust in a timely manner according to changes in the internal and external environment,that is,the industry development environment is different,and the resource arrangement method of enterprise execution is also different.Due to continuous mergers and acquisitions,the way in which resource allocation can play a role in enterprise value tends to become more complicated.Businesses will go through the process of building and divesting resource portfolios;With the deepening of integration,the integration strategy has also transitioned from pioneering restructuring to rich restructuring;The source of value creation has changed from business leverage to industry leverage.In short,if enterprises want to improve the effect of continuous mergers and acquisitions,they must pay attention to the resource arrangement after obtaining resources,and summarize the process of creating value for enterprises by each merger and acquisition and find out the rules,in order to provide experience and ideas for future mergers and acquisitions,and provide reference for other pharmaceutical companies to achieve value creation through continuous mergers and acquisitions.