Research On The Target Selection Of Real Estate M&A

In recent years,the real estate prices in many cities across the country have risen rapidly,which has ushered in the country's escalating macro-control of the real estate market.According to the spirit of the 19th National Congress,the "house is used for living,not for speculation",the real estate market regulation continues to heat up,the industry growth rate is gradually slowing down,the cost of land acquisition by enter-prises is increasing,and the profit space is narrowing.At the same time,in the context of current deleveraging,the scale of financing for real estate companies has shrunk dramatically,and financing costs have risen overall.In this context,small and medi-um-sized real estate developers face tremendous pressure to survive,while developers with comprehensive strengths use their own resources and operational management capabilities to quickly become stronger and bigger,and there are also a large number of M&A investment opportunities in the industry.Real estate mergers and acquisitions are on the rise.Whether the merger can be carried out smoothly,whether it can bring positive performance to the company after the merger,these are closely related to the choice of the M&A target.At present,there are many researches on mergers and acquisitions in academia,but most of them focus on M&A value evaluation,M&A performance evaluation,post-merger integration field,and economic benefits arising from M&A,and comprehensive research literature on M&A target selection.And there is very lit-tle information,especially in the field of real estate mergers and acquisitions,with less specialized research.Through research on a number of well-known real estate compa-nies,the author finds that although major housing companies have taken M&A as one of the main ways to achieve corporate strategy,most of them have not established a comprehensive evaluation of M&A target selection in terms of M&A target selection.The indicator system and target selection process have made the selection and evalua-tion of M&A targets in the process of M&A not scientific and rigorous,which has af-fected the efficiency of M&A to some extent.This paper takes the choice of real estate M&A as the research direction.Through literature research,case study,and the combination of qualitative research and quantitative analysis,firstly,the background,current situation and existing prob-lems of real estate M&A in China are analyzed.Secondly,starting from the main problems of real estate enterprise M&A target selection,this paper conducts in-depth research on the aspects of enterprise M&A strategy formulation,M&A target selection principle,M&A information collection,M&A target initial evaluation,M&A target risk assessment and M&A target value evaluation.Finally,combined with the charac-teristics of the real estate industry,summed up the process of selecting a real estate enterprise M&A target,researching and formulating the system's initial evaluation model of M&A target,providing a more operational value evaluation method,and passing the actual M&A case.The study conducted an empirical analysis of the method.This study provides reference and reference for real estate enterprises to choose M&A targets,and has certain guiding role in saving resources investment,im-proving M&A efficiency and improving M&A success rate.In view of my limited theoretical knowledge and professional level,many theo-retical studies are mostly based on the previous research experience.Therefore,this paper is still lacking in theoretical depth.Whether the research results can be used to guide actual combat also needs to be further improved through practice..With the attention of real estate managers,experts and scholars in real estate mergers and ac-quisitions in recent years,the author believes that the industry's research on real estate M&A objectives will be more in-depth,and relevant research results will be more conducive to guiding the actual work of enterprises and promoting resources.More reasonable allocation to promote the sustainable and healthy development of the real estate market.