Research On The Motivation And Performance Of Real Estate Enterprise M&A

With the continuous penetration of economic globalization,mergers and acquisitions become an important means for enterprises to expand their operations.The real estate industry ranks the first in the number of m&a cases in China.But because of the real estate industry belongs to the capital-intensive industry in our country,and the resources inside the industry can't reasonable equilibrium,coupled with a macro level of government regulation,the tightening of monetary policy and industry competition pressure is too large,the constraints conditions greatly compress the real estate industry development space,so many companies are seeking acquisitions to curve for national salvation.However,for real estate enterprises,can mergers and acquisitions achieve the expected strategic objectives? How to evaluate the m&a performance? What are the factors that affect the performance of m&a? And so on are necessary for in-depth research.The study case selected in this paper is the diversified mergers and acquisitions of traditional enterprises in emerging industries for the purpose of business transformation,which are relatively rare in the real estate industry.Therefore,this study enriches the analysis of actual cases.Combining with the characteristics of China's real estate industry mergers and acquisitions,USES the case analysis method for melt and wanda the brigade of China m&a motivation has carried on the exploration,according to m&a motivation theory,the influence of industry competition,where a Chinese to get low price high quality of land resources,expand the scale management,trigger synergies,contributed to financial and win-win situation is the generation of the m&a deals.In this paper,the combination of event analysis and financial index method is selected to study the long-term performance and short-term performance,which is an effective reference for improving the success rate of mergers and acquisitions.It is found that the expected return rate of sunac China after the merger is more positive than negative,and the increase of the accumulative excess return rate reaches the maximum on the announcement date of the event and remains positive all the time.It can be seen that the market holds a positive attitude towards the merger.From the perspectives of profitability,operating capacity,solvency and growth capacity,different financial indicators were selected to analyze the changes of long-term performance after merger and acquisition.The research results showed that the solvency was weakened due to the rise of asset-liability ratio,in addition,most of them were in a good growth trend.According to the case study,it is found that the m&a performance of real estate enterprises can be improved from different levels through a series of means,such as reasonable selection of m&a objectives,correct assessment of the management status of the capital chain of the acquirer,diversification of m&a and strengthening of post-m&a integration.