Research On The Performance Of Continuous Mergers And Acquisitions Of CR Sanjiu

With the support of the government and the development of the industry,more and more enterprises in the pharmaceutical industry enhance their core competitiveness through frequent mergers and acquisitions.Does the company’s performance improve after continuous mergers and acquisitions? There is relatively little literature on the combination of enterprise life cycle and continuous M&A performance,and the theory of enterprise life cycle has an important impact on enterprise development.Therefore,this article intends to study the continuous M&A activities of China Resources Sanjiu from the perspective of enterprise life cycle,mainly analyzing the motivation,impact mechanism,and performance of its continuous M&A.This article divides the continuous M&A stage of CR Sanjiu from 2010 to 2021 into two stages,analyzes the motivation of continuous M&A and the mechanism of continuous M&A affecting performance in these two stages,discusses the performance of continuous M&A through four aspects: event study method,financial indicator method,non-financial performance,and economic value added,compares the differences in the performance of continuous M&A in the two life cycles,and summarizes the characteristics,performance The impact of strategy on the performance of continuous mergers and acquisitions.This article draws two research conclusions.The first is the conclusion of the case of CR Sanjiu: First,the continuous M&A strategy of CR Sanjiu is affected by its life cycle;Second,CR Sanjiu achieved economic growth through long-term and mature continuous mergers and acquisitions;Third,CR Sanjiu ’s cash payment has a greater impact on continuous mergers and acquisitions during the growth period;Fourth,the efficiency of resource integration in the mature period of CR Sanjiu is lower than that in the growth period.Inspiration to the pharmaceutical industry from this case: First,mergers and acquisitions strategy choices should be made based on the enterprise’s life cycle;Secondly,the payment and financing methods for mergers and acquisitions should be reasonably selected based on different life cycles;Thirdly,resource integration should be carried out in combination with different life cycle characteristics.