A Case Study Of Sunac China’s Acquisition Of Wanda Resort And Hotel Project

Corporate mergers and acquisitions are the only way for any enterprise to further expand.According to the data disclosed by the media,as of July 2018,China’s M&A market has completed nearly 200 M&A transactions,of which 141 M&A transactions have been disclosed to the public.The total transaction price is RMB 91.11 billion,which is equivalent to each M&A transaction cost RMB 648 million.In terms of the number of cases,the real estate industry is the top one.The total consideration for the completion of the merger is RMB 20 billion,a total of 25 transactions.At present,the concentration in China’s real estate industry is low,and the market share of several large-scale real estate enterprises is not high,far less than 50%.Moreover,the resources in the industry are not well-configured,coupled with various government regulation and control,and tightening of monetary policy.Various restrictions have hindered the development speed of real estate enterprises,so this method can effectively solve this problem through mergers and acquisitions.But not all mergers and acquisitions can be successful,and research on M&A motives,M&A performance,and performance influencing factors is necessary.This paper first describes the research and theoretical knowledge of real estate industry mergers and acquisitions at home and abroad,and then introduces the general situation of the whole industry and the status of mergers and acquisitions,and analyzes the case of Sunac China Wanda Travel and Hotel Project.It mainly focuses on the three major directions of M&A,M&A performance and performance influencing factors.Based on different research perspectives,the event research method and the financial analysis method were used to evaluate the performance of Sunac China’s M&A event,and the cumulative abnormal return of the company was calculated to analyze the market performance of Sunac China.The four dimensions of solvency,operational capability and growth capability select a series of financial indicators to analyze their financial performance.This study reveals the main factors that led to its performance improvement.At the end of the paper,according to the case of Sunac China’s acquisition of Wanda,the paper puts forward suggestions for improving the performance of real estate M&A.