A Comparative Study Of M&A Performance Of Hotel Enterprises

Since 2013,China's hotel industry has entered the era of large-scale M & A,in which state-owned capital,private capital and foreign capital have participated,constantly promoting the rapid development of China's hotel industry.In order to obtain the opportunity of market and development,major hotel enterprises adopt M & A as an important means of development,hoping to rapidly expand the scale of enterprises and improve the market share of enterprises in a short period of time.With the continuous development of M & A in the hotel industry,the behavior of M & A has gradually become rational from blind conformity.Hotel enterprises pay more attention to the performance level of M & A.The performance of M & A is affected by many factors,and different evaluation methods affect the results of M & A performance evaluation of hotel enterprises.The correct evaluation of the merger and acquisition performance of hotel enterprises is conducive to avoiding the blind acquisition of hotel enterprises,promoting the transformation of the business mode of hotel enterprises,guiding the hotel enterprises to adopt appropriate business strategies,so that the hotel enterprises can carry out sustainable operation and development.Based on the research of domestic and foreign M &A performance literature,this paper analyzes a variety of different M &A performance evaluation methods,such as event research method,factor analysis method,discounted cash flow method,expert scoring method,traditional financial index analysis method and economic added value evaluation method.Through the analysis,it is found that the EVA evaluation method is more comprehensive,real and targeted for the performance evaluation of hotel enterprises' M & A.Based on the EVA evaluation method,this paper focuses on the analysis of the core evaluation indicators of EVA,and decomposes the EVA return rate into the after tax net operating profit rate,capital turnover rate and weighted average capital cost,and uses these three indicators to carry out the detailed M & A performance evaluation,in order to provide new ideas and methods for the hotel enterprise M & A performance evaluation.At the same time,this paper selects two large-scale hotel enterprise M & A cases,the M & A of Shoulv Hotel and Rujia Hotel and the M & A of Jinjiang Hotel and Louvre Hotel,and makes a horizontal and vertical comparative analysis.It is found that the M & A performance of Shoulv Hotel is higher than that of Jinjiang Hotel,which is mainly due to the lower net investment cost and debt capital ratio of the former.In view of this,combined with the detailed EVA rate of return analysis,hotel enterprises can improve their M & A performance by increasing net operating profit,reducing net investment cost,balancing the equity capital ratio and debt capital ratio of enterprises.There are three main points to pay attention to in the M & A performance of hotel enterprises.First,establish a performance evaluation system based on EVA.Second,increase the attention to the net investment cost.Third,reasonably adjust the static asset liability structure.