Research On The Performance Of B Company’s Overseas Merger And Acquisition Of J Company

With the development of disease research,the structure of drugs is becoming more and more complex.In order to solve the problems of high r&d cost,long r&d time and low success rate,pharmaceutical enterprises tend to choose to cooperate with efficient and professional outsourcing service CMO enterprises.With the complexity of the competitive environment and the diversification of market demands,leading enterprises in the CMO industry have realized that mergers and acquisitions are the most efficient and efficient means to strengthen their comprehensive competitiveness and expand their geographical service scope.This paper selects the overseas acquisition of J company by B company in CMO industry as a case study,and evaluates its overseas acquisition performance based on its acquisition motivation.First of all,the acquirer(B)and the acquired(J)companies’,situations are presented generally.And it is advisable to reviews the M&A process of B company’s overseas acquisition of J company,and analyzes its motivations from the perspective of B company based on diversification theory,synergy theory,resource-based theory and dynamic capability theory.Secondly,based on the motivations,this paper analyzes and evaluates B’s overseas M&A performance from some aspects: market,financial and non-financial performance.To get the information about market performance of the case,the announcement date of the proposed merger and acquisition is identified as the event date,using the event study method to compare the company value before and after the merger,and evaluates the market performance of B company in this overseas merger and acquisition.To understand its performance of finance,we use financial index to analyze its operating income structure,profitability,operating capacity,debt paying capacity and growth ability before and after M&A,and comprehensively evaluate financial performance.In terms of non-financial performance,this paper analyzes the M&A performance from three perspectives: research and development capability,product upgrade and transformation success.Thirdly,this paper analyzes the reasons for the change of B company’s overseas M&A performance,and puts forward corresponding research enlightenment for the reasons.Finally,the conclusions of research are showed with summarizing paper,the flaws are explained,and the researches of future are worth expecting.Through the case study of B company’s overseas merger and acquisition of J company,we hope to further enrich the theoretical system of CMO industry’s overseas merger and acquisition,and provide experience for enterprises in the same industry to carry out overseas merger and acquisition.