Study On Performance Of M&A Of Real Estate Enterprises In China

M&A as an important part of capital market allocation of resources plays an important role on the assembling of capital and industrial expansion. M&A is an effective way of all businesses to grow in achieving structural adjustment and industrial upgrading. China’s real estate industry is a pillar industry of national economy, but many enterprises in small-scale and the lack of a leader, so the real estate industry needs to achieve survival of the fittest, industry consolidation and resource optimization through mergers and acquisitions. The fact conforms to the objective needs. Since the era of mergers and acquisitions in2004, later national control policies are strengthened and monetary policy tightened, and industry-consolidation and re-shuffling is growing.Domestic and foreign academic researches on M&A have yielded fruitful results. Either economic or social benefits are important on China’s real estate M&A. but the research is still on the way and the conclusion is not rich. This paper does the research on the real estate enterprise M&A. Application of existing theory of M&A motivation and M&A performance theory, combined with realistic characteristics and background of the real estate industry, the paper analyzes M&A in China based on different motives, such as state-owned enterprises by the government to promote M&A. land acquisitions based on the theory of market forces. based on the diversified development of horizontal mergers and acquisitions or mixed mergers and acquisitions. M&A shell resource-based financing purposes and implemented in order to cash in the secondary market profit vicious mergers and acquisitions.Empirical research on the case of M&A in2008. the paper does the comparative anahysis of different types of activity, according to the performance difference to reverse derivation of M&A motivation. And it draws a conclusion that:(1) the business of the equity transfer in M&A event gains the largest, and has sustained profitability:(2) equity interest in the acquisition of companies M& A income is positive, but cannot sustained growth in the long run:(3) the poor performance is associated with trading assets reorganization, and later there is a continued downward trend.(4) the transfer of shares and share purchase of non-related party transactions can be achieved a positive return, indicating that this type of M&A motives for the purpose of the development of the company’s business strategy, that is. mergers and acquisitions of strategic type. And M&A between related parties short-term performance for the negative returns in the long run did not bring a positive return, you can infer that this reorganization is more for the beautification of the needs of the financial statements, financial recombinant.Finally, the paper, combined theoretical analysis and empirical results and focusing on the problems or deficiencies of M&A, gives two suggestions. One is that based on perspective of government and regulatory authorities from industrial guidance, M&A market, the legislative restructuring, financing channel and intermediaries should be improved. The other is that decision-making mechanism. Equity management, merge integration and risk control improvement should be strengthened form the business perspective.