The Countermeasures Research Of Acquisition Between Yurun Group And Hexi Real Estate Company

Nowadays, not only to China but also to the rest of the world, M&A (Merger and Acquisition) has been becoming a hot economy topic. After Chinese economic reform policy had been implemented, more and more companies started to realize their value through acquisition activities. It’s been noticed that in the M&A practice, instead of focusing on how to carry out the integration measures for the new enterprise, most companies just simply pay attention to the selection of suitable acquisition target as well as the negotiation on the acquisition priceThe author tried to use the knowledge of modern business management theory, along with the working experience in a local real estate company, to analyze the process and result of acquisition practice between Yurun Group and Nanjing Hexi real estate company. In associated with the international acquisition theory researching, the author analyzed the reasons for the failure of this M&A and found out solutions for these two companies after their M&A been finished. Showing how motivation and resistance powder will be affected to the result of M&A practice. This case study is trying to find out a set of practical solutions for the private company of how to make an effective integrating system for the non-state owned enterprise.The research methods of this article are:first to review the M&A theory of modern enterprise, analyzed the necessity of merger integration between private owned company and stated owned company. Then, to narrate M&A process of the two companies and analysis the reason of the failure. And using the theory of M&A integrating, designs a reasonable M&A integrating frame. Based on above findings, the next step is to discuss how to establish an effective M&A integrating model through management pattern, strategic conformity, function activity conformity and other aspects. In the mean while, the author also discussed how can government be an effective service provider when non-state owned company take M&A with a state owned company.In the end, the article concludes that a successful M&A activity is a continuous process. There are lots of interactive factors that would affect the success of M&A. If merger plan hasn’t been well prepared, problems will be coming out through the M&A implementation process. Therefore, we must pay attention to the entire M&A activities, set a reasonable acquisition plan. Integrate two companies carefully after the completion of the merger which could help both parts to enjoy the benefits of the acquisition.