Study On The M&A Strategy Of Chinese Real Estate Industry

Enterprise M&A(merger and acquisition) is a historical trend. M&A of enterprises has become to be an important tool for enterprises to expand the size and increase their strength, increase efficiency and improve the international competitiveness. The author researches real estate by analysising the cases of real estate , and analysises the theory of M&A and strategic management, and also M&A strategy, in conjunction with real estate industry characteristics, industrial chain and Chinese real estate market conditions, market characteristics, mergers and acquisitions status.Chinese real estate M&A strategy majorly includes the timing of M&A, model selection, the choice of target enterprises, the integration of M&A.Firstly, the timing should be based on the product life cycle theory. Real estate enterprises determine the timing of M&A according to their own period of development. When the real estate business will be or are in the period of maturity development, the enterprises should take strategic M&A timely, which is based on the industry environment. For those in its infancy stage of the real estate business or recession, the industry should face up to its own conditions on the basis of objective laws in the development and accept the fact that it must be taken strategic M&A timely.Secondly, there are four models to choose, which include Boston Consulting Group Growth/Share Matrix, Growth Vector Components and Competitive Analysis of Porter. These four models have a certain role for real estate business in guiding the strategic M&A choices. Tirdly, on the choice of the target enterprise, the real estate industry enterprises should analysis a target enterprise and assessment its value on the basic of the same or complementary industry, the use of high-value, the modest size.Finally, there are strategy and resources integration in the real estate industry M&A integration. When strategy integration are executed, it should be based on the origin, trend, goal of M&A strategy. Resources integration includes tangible resources integration and intangible resources integration.At the same time, the enterprise should pay attention to the integration of M&A in the three aspects: the regulatory body which is responsible for the management and integration in transitional phase, the integration which should be implemented in phases in order to implement and assessment, the Integration which must be accompanied.