A Study On The Motivation And Economic Consequences Of Industrial Merger And Acquisition Fund Mergers And Acquisitions

With the transformation and development of China’s economy,various industries continue to upgrade and integrate,setting off a wave of enterprise mergers.Among them,industrial mergers and acquisitions fund mergers and acquisitions is a merger and acquisition model for PE institutions(private equity institutions)and listed companies to cooperate.Because it can effectively reduce the risk of mergers and acquisitions,it is favored by many enterprises,mainly used in strategic emerging industries such as medicine and technology media communications.However,this model is not yet fully mature,and many enterprises have not shown their unique advantages.Therefore,we need to select specific cases for research.This article first starts with the research background,combs the relevant literature on industrial M&A fund mergers and acquisitions,defines the relevant concepts needed in this article,and clarifies the theoretical basis.Subsequently,it introduces the background of the case of Taige Pharmaceutical Industry M&A Fund,and explores the motivation of Taige Pharmaceutical Industry M&A Fund from the perspective of selecting the motivation of Jietong Tairui M&A and the motivation of selecting the industry M&A fund model.Finally,we comprehensively evaluate the economic consequences of the merger and acquisition of Taige Pharmaceutical Industry M&A Fund from the perspective of short-term market reaction,long-term corporate value,financial effects,and non-financial effects.Among them,this article uses the event study method to analyze its short-term market response;Calculate economic value added to analyze its long-term enterprise value;When analyzing the financial effects,select appropriate financial indicators to analyze the profitability,solvency,operating ability,and development ability of the Tager Pharmaceutical Industry M&A Fund before and after the merger,and compare them with enterprises in the industry that have conducted mergers and acquisitions through traditional models in the same year;In the analysis of non-financial effects,it mainly analyzes from two aspects: enterprise market competitiveness and human resources.Finally,it analyzes the reasons for the economic consequences and summarizes the risks existing in the process of industrial M&A fund mergers and acquisitions.Through comprehensive analysis,this article believes that the motivation for the merger and acquisition of Taige Pharmaceutical Industry M&A Fund is that Taige Pharmaceutical wants to acquire high-quality resources,expand the industrial chain,achieve strategic development,and improve enterprise competitiveness through the merger and acquisition of Jietong Tairui;At the same time,use the industry merger and acquisition fund model to reduce merger and acquisition risks,alleviate capital pressure,and accelerate the realization of synergies.This study finds that Tager Pharmaceuticals has had positive economic consequences after acquiring Jietong Terui through an industry merger and acquisition fund.From the perspective of short-term market reaction,the share price of Tager Pharmaceuticals has achieved a short-term improvement and obtained a positive market reaction;From the perspective of long-term enterprise value,since the completion of mergers and acquisitions through industrial merger and acquisition funds,the economic value added has increased all the way,improving the enterprise value.From the perspective of financial effects,it has improved profitability and debt paying ability to a certain extent,and its operational and development capabilities have steadily increased;From the perspective of non-financial effects,the market competitiveness of Tager Pharmaceuticals has increased,and the per capita profitability has increased.Through a complete study and summary of the case,we have found the risks in the process of mergers and acquisitions,and obtained some inspiration.We hope to provide some reference for pharmaceutical CRO companies that implement industrial merger and acquisition fund mergers and acquisitions in the future.