Research on the Financial Performance of San li Pharmaceutical's Consecutive Mergers and Acquisitions from the Perspective of EVA
DOI:
https://doi.org/10.54097/s32v7s31Keywords:
Pharmaceutical Enterprises, Continuous Mergers and Acquisitions, Financial PerformanceAbstract
The pharmaceutical industry is closely related to People's Daily lives. Against the backdrop of the COVID-19 pandemic and an aging population, the number of domestic pharmaceutical companies has been increasing, and top foreign pharmaceutical companies are also accelerating their layout in the Chinese market. The competition among enterprises is becoming increasingly fierce. For domestic pharmaceutical companies to gain a foothold in the fierce competition of the pharmaceutical industry, implementing continuous mergers and acquisitions is a better strategic approach. This article selects Guizhou Sanli Pharmaceutical Co., LTD. (hereinafter referred to as:) Taking Sanli Pharmaceutical as the subject of study, considering the company's continuous mergers and acquisitions in the past three years (2022- 2024), based on the EVA perspective and traditional financial indicators, through longitudinal and transverse comparative analysis of the company' s financial performance before and after the mergers and acquisitions, it is concluded that continuous mergers and acquisitions have made a positive contribution to EVA's growth. However, the company's profitability, debt-paying ability and operational capacity declined after the merger, and the short-term integration pressure led to a decline in traditional financial indicators. But in the long term, it can create value for the company. Based on this, the corresponding case insights are summarized to enrich the corresponding research field and provide experience and lessons for similar enterprises that want to implement continuous mergers.
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