Research On The Financial Effects Of The Merger And Acquisition Of Zhengqi Investment By Vontone Real Estate

The real estate industry is an important industry in China's economy.Since the reform and opening,the real estate industry has experienced rapid development.Considering the particularity of the real estate industry and its prominent position in the M&A market in China,it selects Vontone Real Estate,one listed company of the real estate industry,as the research object and conducts a systematic and in-depth study on the financial effects of the M&A of Zhengqi Investment.The full text is divided into five chapters.The first chapter is the introduction,which focuses on the background and significance of the research.and from the literature review of the causes and the financial effects of M&A to find the train of thought and form of the article.The second chapter is the theory outlines of M&A,which focuses on the concept of M&A,the classification of M&A,and the reasons for M&A.The financial effects mainly include three aspects: the first one is to enhance the use of corporate funds,the second one is to enhance the solvency of enterprises.and the third one is how to achieve reasonable tax avoidance after M&A.The third chapter is a case study of Vontone Real Estate's merge and acquisition of Zhengqi Investment,which mainly introduces the basic situation of Vontone,the process of M&A,and the reasons for selecting M&A.The last chapter is the core content of the full text.Case studies and comparative research methods are used to detailed analyze the changes in financial indicators such as solvency,operating ability and profitability before and after the M&A,then further explore the reasons for the changes in the financial effects of Vantone Real Estate after M&A.The last part combines the previous theories and case studies then concludes that the M&A of Zhengqi Investment has expanded the market of Vontone Real Estate and produce a positive financial effect for Vantone Real Estate.Vantone Real Estate's M&A is a very successful investment.Through analysis of Vantone Real Estate's merger and acquisition of Zhengqi Investment,the following conclusions are drawn: firstly,by analyzing changes in financial indicators over the years before and after hen further explore the reasons for the changes in the financial effects of Vantone Real Estate after M&A and comparing with the average value of the real estate industry,M&A has produced a positive financial effect,and the debt capabilities,operationalcapabilities and growth capabilities have all been positively enhanced.Secondly,real estate companies can achieve their own strategic transformation through M&A.The acquisition of Zhengqi Investment meet Vantone Real Estate's strategy of real estate reducible,and meet the strategic development plan of the company's transformation and upgrading: to be a real estate financial service-oriented “tertiary industry”.It will help expand the business field and create a real estate financial development platform.Thirdly,M&A expand Vantone Real Estate's financing channels,establish a diversified financing platform,and promote the company's core business development.The analysis of financial effects is very important for M&A of real estate companies.Vontone Real Estate's acquisition of Zhengqi Investment has a very positive impact on improving corporate performance and achieving transformation and upgrading.Real estate companies,whose core business are the “second industry”,can achieve the transformation and upgrading to be a real estate financial service-oriented“tertiary industries” by merging a financial company.It believes that the method is worth learning.