Research On Merger Strategy Of Sichuan X Tourism Investment Company Merges Tibet W Company

After more than 40 years' reform,Chinese economy has become the second largest in the world;both people's income and expenditure have risen sharply;Chinese tourism is one of the areas that benefits from the reform and the economy growth;the tourism industry is becoming one of the fundamental and strategic areas that attracts investments.The tourism growth index is higher than the Chinese GDP growth within exceptions in the “SARS” year of 2003 and the natural disaster & financial crisis' s affections in 2008.Recently,due to the improve of policies' transparency,consumption market's strong growth and tourism supply-side reform's carry,Chinese tourism industry becomes investor's new hot target.However;Chinese investors in this field are continuing face the fluidity and the valuation problem,especially in the resource-oriented scenery area.Respecting to a systematic and scientific methodology of the landscape investing,Chinese market is fail to provide an efficient tool to the entrepreneurs and investors.This dissertation will try to combine the theories and reality-scenarios,and make the topic not only an academically-discussion theme,but also an important experimental subject.The theoretical part of this dissertation will base on modern-enterprises' merger and acquisitions,with extremely focus on the scenic-enterprises.A reality case will be discussed in this dissertation,which is mainly focus on the acquisition between Sichuan X tourism investment company and the Tibet W company,with detailed analysis in key issues and their strategic motivation through this transaction.This dissertation contains 6 parts;the first part will mainly address the general background in the tourism and scenic field,including the history of Chinese tourism investing;also an extended discussion will be applied in the comparison of tourism industry and other industries.The second part will mainly deliberate the motivation,future earnings,transaction structure,and strategic movements between tourism enterprises.Through those discussions,this dissertation would like to address suggestions in landscape valuation,risk control,and strategy evaluation.Those discussions also provide the theoretical support of the third part,which is the reality scenario discussion.The third part's reality case will try to cover the Tibet's tourism development history,the acquisition's background and processes.The fourth part will introduce three main issues through the acquisition between two companies;which are valuation problem,transaction structure problem and the new company's management conflicts.The fifth part will try to summaries the above four parts' theories,and provide solutions for the above three issues based on those research results.The last part will try to summaries the whole dissertation and explain the limitations of this dissertation.The key findings of this dissertation are: first,there is no scientific methodologies could apply to the scenic enterprises' acquisitions,mainly because of the field is heavy-assets oriented,the long return period and the lack of external risk control system.Second,the valuation of scenic is very hard under the current market structure,due to investor's past experiences.Third,the property rights of scenic is hard to settle under the current Chinese legislation environment;the acquisition structure have to be carefully designed to avoid the property rights trap.Fourth,the after-merges' company management is a challenge due to the original two companies' management,strategy and culture conflicts;a clear and common goal is necessary of success of the new company.The meaning of this topic is aim to explore the lack of academic research in the scenic investment field,both in quality and quantity.Through the theoretical and reality case discussion,this dissertation is try to present a scientific,systematic,and standardized merge processes could be applied in the real world.The limitation of this dissertation is case-oriented;which is not universal applied.The author of this dissertation will continue to focus on developing this area.