Investment Decision Making System Of Wuhan A Real Estate Development Company

The real estate industry is a comprehensive industry that integrates a variety of economic activities in the development,construction,operation and service of obtaining land as a business object.For real estate companies,access to land is a top priority for their strategies.In general,the cost is relatively low.Indirect acquisition of land through mergers and acquisitions of real estate companies can enable companies to avoid fierce market competition.On the other hand,compared with the acquisition of land from the open market,the M&A of real estate enterprises has a longer payment cycle,and the acquired projects can quickly on the market and accelerate the return of funds.Therefore,corporate mergers and acquisitions have become one of the main ways for real estate companies to obtain land projects in recent years.However,how to make real estate mergers and acquisitions decisions is a new topic for enterprises.This paper analyzes the M&A investment decision-making model of Wuhan A Real Estate Company and finds that the company has improved the efficiency of decision-making by simplifying judging criteria.However,only setting standards from five aspects,especially some standards are relatively broad and not enough,for the M&A target of hundreds of millions of million yuan may result in huge decision-making mistakes,economic losses and the less fault-tolerant quality of decision-making.In addition,the decision-making basis is more subjective,and many standards are “according to specific project conditions” and “in principle”.As a result,in the actual decision-making process,the approvers of each node would rather rely on personal understanding and judgment for their relative lean basis than strictly implement a one-vote veto.This will result in a certain or even large difference between the decision-making results and the decision-making basis,thus affecting the fairness of the decision-making system,and also increasing the operational risk after the decision-making.However,Wuhan A real estate company's M&A decision is currently rely on the general mode,and there are plenty of drawbacks.This paper analyzes the decision model of M&A investment in Wuhan A real estate company,trying to build a set of scientific M&A decision system in the real estate field,which helps the company to make decisions and reduce errors.The decision-making system established in this paper is scored by the third-level indicators,combined with the index weights to calculate the second-level and first-level index scores.The higher the score,the better the project.This article also evaluates the M&A case of Wuhan A Real Estate Company through the above-mentioned decision-making system to verify the scientificity and practicability of this decision-making system.Through system score analysis,this project is a high-quality project that also conforms to reality.