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

Real estate has a very prominent position in our national economy,and is one of the important engines of economic growth.The development speed of the property industry has slowed in recent years land cost remains high,the upward space of housing price is limited,and the real estate enterprises are faced with multiple pressures such as credit crunch,high leverage and inventory reduction.As a result,the "high leverage,high turnover and high growth" it is difficult to continue with the real estate business model,and it is imperative for the property industry to shift from the leverage operation to the refined operation model.To this end,a large number of real estate enterprises expect to achieve the purpose of bringing management synergies into play,reducing land costs,restraining business risks,enhancing brand value,improving business model and cultivating core competitiveness through merger and reorganization.This paper takes Xinda Real Estate’s merger and acquisition of Huaikuang Real Estate as an example to study its merger motivation and evaluate itspre-and post-merger and re-organisation performance,so as to provide a benchmark for merging and re-organising the real estate industry.First of all,this paper takes the acquisition of Huaikuang Real Estate by Cinda Real Estate as a case study.According to the research proposition,this paperthis article sets out the research background,significance and purpose of the project,presents the relevant theories such as synergistic effect,competitive advantage,scale effect and market power,and summarizes the domestic and foreign literature.Secondly,it analyzes the basic situation of Cinda Real Estate and Huai Mine Real Estate,describes the specific M&A process in detail,and analyzes the motivation of M&A from the aspects of acquiring land reserve,realizing debt-for-equity exit,realizing scale effect,reducing debt risk,optimizing business structure and so on.Thirdly,from the short-term performance,long-term performance and economic added value and other dimensions,the event study method,financial index analysis method and EVA are respectivelyused for analysis.The results of the analysis show that the merger has somenegative impact on short-run performance and a good positive impact on longrunperformance.Of these,profitability,development capacity,and debt-paymentcapacity have been significantly improved,while operating capacity is still required strengthened.From the perspective of economic added value,the economic added value of Cinda real estate increased significantly in the year when the change of industrial and commercial registration of merger and acquisition equity was completed,but continued to decline,due to the the economic downturn brought on by the outbreak.From the perspective of non-financial performance,the brand value,market share and employee education level of Cinda Real Estate have improved significantly.Finally,through themaximize multiple parties,and strengthening integration after M&A to give full play to synergistic advantages and scale effect as soon as possible.