Motivition And Synergy Effect Analysis Of Mergers And Acquisitions Of Hotel Enterprise

With the rapid development of the global economy,enterprises are also exploring more efficient ways of development,which makes more and more enterprises adopt mergers and acquisitions(M&A)as an effective way to strengthen themselves.In theory,M&A can expand the size of enterprises and improve economic efficiency,but there are also many cases of failure in the actual operation.Therefore,how to achieve the goal of M&A successfully and make reasonable assessment of synergy effect of M&A has become the focus of attention.In recent years,China's tourism has become a boom,which drives the rapid development of the hotel industry.China's current hotel industry is fiercely competitive.The scale of economic hotels is expanding rapidly,but there are some questions,The high-end hotels are also experiencing a downturn in the market.In this context,as a well-established enterprise,Beijing Tourism Group(BTG)merges Home Inn is regarded as a choice for rapid expansion.The acquisition also provides a meaningful reference model for high-end hotels merges economy hotels in China's capital market.This paper firstly reviews the concept of M&A and related synergy theories,Combined with the case of M&A of BTG and Home Inn,it analyzes the industry background,corporate background,the motivation and means of transaction of M&A.The five aspects of operating synergy,management synergy,financial synergy,core competitive synergy and strategic synergy analyzed the M&A effect in depth and concluded that the acquisition was a successful M&A case,the BTG not only obtain the return on investment and the enhancement of the core competitiveness of the enterprise but also get the strategic significance.Finally,we will draw inspiration on how hotel enterprise can achieve better in M&A: A low-risk and high-yield expansion can be achieved through franchised stores;There are many multi-channel selections of M&A financing mode can reduce cost and obtain tax-saving effect to improve the efficiency of financial resources,especially debt financing mode;In order to get synergy effect of M&A,changing the direction of hotel expansion from increasing speed to improving quality,avoiding a series of problems due to the speed of development,promoting the healthy development of China's hotel industry.