Research On The Performance Of LZ Estate's Mergers And Acquisitions

Merger and acquisition is an important way for real estate enterprises to allocate internal and external resources and enhance their market competitiveness.It is also an effective strategic means for real estate enterprises to rapidly expand their scale,enhance their industry status and establish their brand advantages.In recent years,with the rapid development of China's economy,the merger and acquisition activities of enterprises with distinctive characteristics of modern economic behavior,both the number of transactions and the amount of transactions have increased significantly.As one of the pillar industries of the national economy,the real estate industry is more active in its Merger and acquisition activities.The number of merger and acquisition transactions has increased from 84 in 2010 to 221 in 2019,and the amount of transactions has increased from 17.457 billion yuan in 2010 RMB increased to RMB 184.4 billion in 2019.In terms of merger and acquisition types,affected by the continuous macro-control of the state and the periodic fluctuation of the industry,merger and acquisition has become the main type of merger and acquisition activities of real estate enterprises for the purpose of acquiring land resources and industry integration.The number and amount of transactions are dominant,which shows that large and medium-sized real estate enterprises continue to expand market power and improve market set through merger and acquisition of small real estate enterprises Moderate,gain monopoly profits and seek "snowball" type growth.This paper selects LZ Estate,which has been continuously engaged in merger and acquisition activities in recent years and regarded merger and acquisition as the main expansion mode of enterprises,as a case study to sort out the typical merger and acquisition events in 2011-2018.This paper is divided into six parts: the first part is the introduction of this paper,the second part is the introduction of the related concepts of merger and acquisition and the carding of some basic theories and Merger and acquisition performance evaluation methods,which lays the theoretical foundation for the following related research and analysis;the third part is the overview of China's real estate merger and acquisition and LZ Estate merger and acquisition activities;The fourth part is to analyze the performance of LZ Estate merger and acquisition for eight consecutive years,using event research method to evaluate the performance of LZ Estate merger and acquisition in the event window period,using financial analysis method to evaluate the performance of LZ Estate in each single business cycle,introducing EVA evaluation method into LZ Estate annual overall operation performance,and using non-financial index analysis method to LZ Estate Qualitative analysis of production.The research results show that through merger and acquisition,LZ Estate has realized its strategic layout and improved its market position and market scale;however,the larger the scale and frequence merger and acquisition is,the more conducive to the development of enterprises,on the contrary,large and continuous merger and acquisition activities will increase the operational risk of enterprises and reduce the profitability and operating capacity of enterprises.Finally,based on the LZ Estate case,this paper gives specific suggestions on how to improve the performance of merger and acquisition of real estate enterprises that strive to achieve the development of enterprise scale from medium-sized to large-scale through merger and acquisition,and gets enlightenment through summarizing the full text,which provides valuable experience for other enterprises in the same industry to carry out merger and acquisition.At the same time,it also deeply analyzes the shortcomings of the research and the prospect of the future research direction.