A Study On The Motivation And Performance Of BTG Hotels M&A Home Inn

As China's economy enters the transition period,the policy environment gradually improves,the capital market also keeps improving,and more and more enterprises in China carry out merger and acquisition activities.Corporate mergers and acquisitions have long been the focus of economic scholar research,and the merger and acquisition is of great significance to the development of enterprises.After 2012,the development of the hotel industry is slowing down,and the overall performance is declining.Many domestic hotel companies have begun to integrate hotel resources,hoping to enhance their comprehensive strength through merger and acquisition to cope with changes in the hotel industry.In the case of the BTG hotels mergers and acquisitions the Home inns.On the one hand,both the BTG hotels and the Home inns have an important position in the domestic hotel market,which makes the merger and acquisition significant.On the other hand,the state-owned enterprise nature of the BTG hotels makes the merger and acquisition fit the reform of state-owned enterprises.Furthermore,influenced by the strategic intention of the BTG hotels,the Home inns has adopted innovative ways to return to the Shanghai Stock Exchange from the NASDAQ.As a result,BTG hotels mergers and acquisitions Home inns case is a typical example of hotel mergers and acquisitions.The focus of this paper include the following aspects: Firstly,based on the research on the development status of the hotel industry,introducing the background,merger process and merger scheme of both parties in detail.Combined with the theory of merger and acquisition,this paper analyzes the reasons for the merger of the BTG hotels.The main reason for the acquisition is that the BTG hotels aims at the development of its own strategy,the realization of scale effect,the reform of state-owned enterprises,the transformation and upgrading,and the optimization of performance.Secondly,the application event research method,financial index analysis method and EVA research method have systematically analyzed and evaluated the performance of the BTG hotels.Through the event research method,it is found that in the short term after the merger,the share price of the main acquirer will be improved,and the value of the company's shareholders will be created.Through financial index analysis and EVA research,although the merger has political relevance,but the acquisition significantly improves the performance level of the BTG hotels.This is determined by the fact that its merger and acquisition motives are in line with its own strategic development,and the merger and acquisition integration plan is reasonable and the integration effect is good.Finally,through summarizing the experience of merger and acquisition,this paper puts forward the enlightenment of borrowing,and provides reference for the hotel enterprises' M&A and the reform of state-owned enterprises.