| The real estate industry isessential to the welfare of the people.It has kept onbeing focused on due to its special nature,Difficulties in financing,long project cycles,long time to get pay back and policy restrictions all limited the development of the industry.In the past ten years,housing prices soared,people complained while government agencies attacked hard,and the real estate regulation continued to escalate.At the end of 2016,the Central Economic Work Conference proposed that “the housing should not be speculated”,and sets of economic and financial policies should be matched to controlfinancing for real estate companies and homebuyers.De-leverage policycontinued to advance,whiledomestic and foreign financing was strictly limited.On the one hand,the housing enterprises were affected by the restrictions on purchases,restrictions on loans,and restricted sales.The funds were difficult to return.On the other hand,the financing threshold was higher,and people reached mutual consensus that real estate market remained stagnant.However,those real estate behemothskept on M&A small real estate developers through various resources and channels to attain development.At the same time,many real estate companies have taken a different approach,with both connotative growth and extensional expansion,and embarked on the path of diversified M&A.From a broader point of view,the industry has been more concentrated.The research object of this dissertation is the merger and acquisition of the Wanda Tourism,which marks SUNAC's entry into the cultural tourism industry.In the process of writing,author reviewed the status of mergers and acquisitions in the real estate industry in recent years firstly(including the number of M&A,the scale of M&A and the reasons forM&A,etc.)and the status of research on financial risk in M&A.Itwasdiscovered that real estate enterprises joined M&A for the purpose of acquiring land resources,holding operations,diversified development,etc.,especially for some giant companies.And the amount involved in individual M&A is also boosting.So,the financial risks involved here cannot be underestimated.The total amount involved was at the top of 2017 and 2018.This acquisition is also an important step in its strategic transformation and upgrading.After the systematictheoretical review,author firstly explained the background and process of this event.After that,the financial risk in the whole process of the M&A was qualitatively and quantitatively analyzed: At the time of valuing financial risks,the efficacy coefficient method was used to identify the overall risks,then the financial indicator analysis method and the Z-score method were used to analyze in a multi-dimensional way.When using the Z-score method,author made a comparative analysis with reference to the Z-Score of the other five representative enterprises in the same industry,and compared the financial risks before and after M&A.It was found that the process showed its accounts receivable increased significantly,and the land reserve of Sunac was also significantly expanded.Wanda also provided a very useful reference for Sunac,and Sunac has gained a broader market and development prospects due to its brand and years of development experience in tourism industry.However,through analysis,It was advised that Sunac should focus on financial risks due to successive M&A and its aggressive investment strategies.As the M&A is still in the process,this dissertation provides constructive advice on how to control and prevent risks in the subsequent integration phase effectively,achieve the original intention of M&A,and realise the long-term growth and development of the company. |
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