Research On The Motivation And Performance Of Lushang Cross-border M&A Based On Balanced Scorecard

In the context of consumption upgrading,mergers and acquisitions have been active in recent years.In particular,it is more common to adjust the industrial structure by means of cross-border merger and acquisition.Under the effect of policies such as raising real estate transaction tax and restricting land supply,residents’ requirements for buying real estate cannot be met,real estate companies are also under pressure from capital and sales,forcing a reshuffle of the industry,and mergers and acquisitions is more competitive,quick shortcut to achieve crossover development.However,whether cross-border M&A can truly change the performance of traditional real estate enterprises and increase their value has not been accurately determined.Through a specific study of Lushang,a traditional real estate enterprise,developing cross-border mergers and acquisitions of medical beauty enterprises,this paper finds that enterprises should combine the external competitive environment and their own operational strategies to carry out cross-border mergers and acquisitions,which can effectively improve corporate performance and deepen enterprise reform.In this paper,Literature research method and case analysis method are adopted to select Lushang cross-border merger and acquisition of Freda and Focusfreda as the research objects to deeply analyze the motivations and the performance changes after the merger.The enterprise has laid out the pharmaceutical health industry chain for many years,set up the brand image with the concept of health.Carrying out business in the emerging medical beauty industry with cross-border mergers and acquisitions,selling the main functional skin care brand,accord with the strategic development direction of the enterprise,and help to achieve the transformation and upgrading of the enterprise.The content of this paper is arranged as follows:The first part is introduction,which introduces the research background,literature review,research content,research methods and innovation points of the paper.The second part is the definition and theoretical basis of related concepts,it explains the theoretical basis behind the motivation of M&A and the method used to analyze its results,providing theoretical guidance for the following case analysis.The third part analyzes the case of cross-border M&A process,which analyze the macro environment and development status of real estate industry and medical beauty industry,introduce Lu Shang company and target company,and also describes the process of lushang’s acquisition of Freida and Focus biology.The fourth part is the motivation analysis of cross-border M&A.It is explained from four aspects:the financial status of the main real estate industry needs to be improved,the transformation and upgrading of enterprises,the synergistic effect of continuous mergers and acquisitions,and the enhancement of core competitiveness.The fifth part is based on the balanced scorecard of Lushang cross-border M&A performance analysis:financial dimension,internal process dimension,learning and growth dimension and customer dimension.The sixth part is the research conclusion,shortage and policy suggestion.The research finds that the motivations of Lushang cross-border M&A are:the financial position of the main real estate industry still needs to be improved;industrial transformation and upgrading strategy to create a perfect health industry chain;successive acquisitions to achieve synergies;enhancement of sustainable development.Based on the balanced scorecard analysis method,this paper conducts in-depth analysis on the financial performance and non-financial performance of Lushangt before and after the merger,namely,from four dimensions:financial dimension,learning and growth dimension,internal process dimension and customer dimension.Finally,it makes an overall evaluation of the cross-border merger and acquisition.On the one hand,Lushang’s development of cross-border merger and acquisition brings positive effects to the company:firstly,the company realizes the overall transformation and upgrading goal of the industry and deepens enterprise reform;secondly,cross-border M&A brings the company synergistic advantages in operation and management;thirdly,the company has constructed its own unique medical beauty brand established on the road of big health,which has certain brand influence in the medical beauty market,and improved the company’s financial position due to the decline in the main real estate business;fourthly,after the cross-border merger,the company pays more and more attention to r&d investment and talent training,and its sustainability is greatly improved.On the other hand,mergers and acquisitions increase the company’s sales expense ratio.Finally,this paper summarizes the reasons for the success of this crossover,and puts forward policy suggestions for its future development,hoping to provide reference for other domestic real estate enterprises to get out of the current development dilemma.The main expected contributions are:by combining China’s unique political background and market background,this paper studies the motivation and performance of lushang,a traditional real estate enterprise,which occupies a place in the medical beauty market in a short period of time and has achieved periodic success,which supplement the theory of cross-border m&a of real estate enterprises and also provides references for future cross-border M&A and post-M&A performance evaluation.Meanwhile,medical beauty industry as a new industry,the performance evaluation of traditional real estate enterprises’ cross-border merger and acquisition of medical and American enterprises based on balanced scorecard is conducive to improving the application value of balanced scorecard theory in this field and has certain theoretical and practical significance.