A Research On M&A Performance Of China's Real Estate Industry

How to expand the strength of the company and improve the core competitiveness required by the development of the enterprise under the condition of limited resources has become a hot issue of concern to everyone.Merger and acquisition of enterprises arises at the historic moment in such an economic environment and becomes an important subject for everyone to study.In such a competitive market,in order to achieve sustainable development in the later stage,many enterprises are faced with two choices,that is,merger or acquisition.A good m&a behavior can better integrate market resources for m&a enterprises,introduce professional management talents,further expand their market share,and thereby improve their position in the market.However,a failed enterprise merger and acquisition will not only consume a large number of operating costs and bear high debts,but also be eliminated by the society due to its inability to bear financial risks and market risks.Therefore,it is very important to study how to improve the level of the m&a.Since the m&a boom was introduced into China in the 1990 s,the real estate industry,as one of the important economic sectors in China,has been carrying out m&a in full swing.In this real estate m&a boom,sunac China is one of the dark horses in m&a.This paper gives a basic overview of the concept and theory of enterprise merger and acquisition and analyzes the case of real estate m&a representative sunac China's m&a of RAYCOM in 2016,and finds that its m&a motivation is to grab market resources,reduce operating costs,form industrial scale,strengthen market power,and make strategic transformation.At the same time,the non-financial performance of sunac China m&a is analyzed.The results show that from the perspective of financial performance,the development of RAYCOM is not optimistic,and sunac China is in a stable state of development.Merger in 2016,and China's profit ability,debt paying ability,operation ability and development ability level declined slightly,m&a performance compared to the merger and acquisition before the result is not optimistic,but in with the development of the company to integrate,in harmony to create the mergers and acquisitions in sunac China two years after the merger of the financial indicators greatly ascend,m&a performance levels increase gradually;From a non-financial perspective,sunac China has expanded the industrial scale?broadened its customer group?improved its internal process and improved employee cohesion.Its behavior is in line with its own development strategy,which is conducive to the long-term and stable development of sunac China in the real estate market.Finally,based on the results of mergers and acquisitions,this paper summarizes how sunac China has improved the post-merger performance,and puts forward suggestions on how to improve the performance level of mergers and acquisitions in the real estate industry,such as doing a good job in preliminary research,combining development strategies,paying attention to mergers and acquisitions integration,and improving the regulatory system.