Motivation And Performance Analysis Of ZS Company’s Mergers And Acquisition Of CW Company

M&A has become a major way for enterprises to seek rapid development.In recent years,M&A(mergers and acquisitions)has become an important way for both domestic and foreign enterprises to improve status and enhance their performance,which has a pivotal position in the process of corporate strategic development.Under the background of comprehensive deepening reform in our country,the reform of the market economy system is in full swing.The country is also supportive of M&A integration.Many enterprises begin to try to expand the scale of their enterprises or extend the scope of their business activities through M&A.However,many enterprises still take a wait-and-see attitude towards M&A,and are still uncertain about whether M&A can produce actual economic benefits and improve the intrinsic value of enterprises.As a capital intensive industry,the real estate industry is one of the main components of our economy.Due to the mechanism of "housing and housing do not stir",the development speed of the subdivision of real estate has slowed down,and the positioning has become clear.Under the fierce competition in the market,the industry profit is greatly reduced,leading to a significant internal fragmentation trend,which makes the market clustering phenomenon is obvious,and further highlights the leading enterprises.In the past,the real estate development was mainly extensive,but now,the era of management to benefit has come,the real estate industry to keep up with the pace of The Times,transformation and improvement in the reform.In 2020,the country announced the "three red lines" for the real estate industry,indicating that the era of crazy expansion of debt in the real estate industry has passed.In this case,many blindly expanding real estate enterprises face a severe liquidity crisis,which leads to the break of the capital chain,the company faces bankruptcy liquidation,and a large number of projects are left unfinished.On the one hand,for real estate enterprises with healthy capital structure,it is an excellent opportunity to acquire the high-quality assets of bankrupt companies,so as to further expand their own development and obtain better returns.On the other hand,the government has a great demand for bailout for some projects directly related to people’s livelihood,and local city-owned state-owned enterprises and central enterprises are required to cooperate with local governments to sort out the projects and undertake subsequent development.Therefore,the real estate industry mergers and acquisitions will usher in a wave of rapid development.China’s capital market started late,but M&A continuously occur with the development of capital market.The research in this thesis starts from a specific industry,it has theoretical influence to studying M&A types and motivation,and their relationship with M&A performance,it will also provide reference to enterprise for improving M&A performance.By reading a lot of relevant literature about M&A,this thesis analyzes and summarizes the research status of M&A in both domestic and foreign.In this thesis,ZS company as an example,through the analysis of its acquisition of CW company in 2020 case,aimed at real estate listed companies in today’s fierce competition,the project M&A motivation and performance feedback and other issues were studied,to consider whether M&A can improve the performance of housing enterprises,and how to improve the performance of housing enterprises.The research objective of this thesis is to study the motivation and performance of enterprise merger and acquisition through ZS Company’s merger and acquisition behavior of CW Company.To this end,first of all,it is necessary to understand the relevant acquisition theoretical knowledge and the research literature of experts and scholars,mainly through library search,knowledge network search and other ways to sort out a lot of acquisition basic theoretical knowledge and methods.Secondly,in order to better lead to the enterprise cases in this thesis,it is necessary to lay a foundation for the common theoretical knowledge of enterprise M&A,such as the concept of enterprise M&A,the means of enterprise M&A,the motivation and performance of enterprise M&A and other theories,so as to lay a solid theoretical foundation for the study of M&A in this thesis.Then,leads to the research object of this thesis,namely ZS company merger and acquisition of CW company event,around the event first introduces the basic business situation of the two acquisition subjects,the company’s business scope,business characteristics,merger and acquisition implementation measures.Next,this event will be studied and analyzed,focusing on motivation and performance.The main motivations include synergy theory,market power,cost reduction,etc.Performance analysis includes market performance,financial performance,non-financial performance analysis,comprehensive and effective evaluation of acquisition results.Finally,through the case analysis to get effective conclusions,and actively reflect and summarize the experience and lessons.This thesis hopes to study the M&A events of Chinese real estate companies in order to provide certain reference basis for future M&A activities in Chinese real estate industry.ZS company as the state-owned enterprises under the direct jurisdiction of the state-owned Assets Supervision and Administration Commission real estate plate listed platform,at the same time belongs to the top ten enterprises in the real estate industry,hoping the ZS company merger and acquisition of CW company research can provide a certain reference value for Shenzhen real estate merger and acquisition business.