Performance Evaluation Study Of China Merchants Shekou’s Acquisition Of Avic Shanda

In recent years,with the stabilisation of real estate market prices and the implementation of relevant regulatory policies,strategic transformation and diversification have become the new directions for the further development of real estate enterprises in China.In this process,mergers and acquisitions(M&A)have become the important choices for real estate enterprises to adjust their industrial structure.It uses the event study method and the balanced scorecard to study the short-term and long-term performance of China Merchants Shekou’s M&A of AVIC Shanda in the paper.The results of the study have important implications for the sustainable development of C hina Merchants Shekou and provide practical implications for M&A of real estate companies.Firstly,it reviews the relevant literature at home and abroad,composes the concepts related to M&A and M&A performance,briefly discusses theories related to market power,synergy theory and economies of scale theory,and introduces the evaluation methods of M&A performance such as event study method,financial index method and balanced scorecard,etc in the paper.After gaining some understanding of M&A performance and evaluation methods,it was determined that the M&A performance of C hina Merchants Shekou Enterprises was analyzed from a short-term and a long-term perspective based on the event study method and the balanced scorecard respectively;Secondly,it discusses the overview of the two sides of the M&A case,the analysis of the pre-merger motivation,the analysis of the M&A process and the analysis of the post-merger financial situation;Thirdly,the short-term performance of the M&A is analyzed based on the event study method,and the long-term performance of the M&A is analyzed based on the balanced scorecard.Also,fuzzy integrated evaluation method is introduced to score the M&A results and quantify the total performance score of the M&A;Finally,suggestions are made on how to improve the M&A performance of China Merchants Shekou.The results of the study indicate that this M&A event is not ideal in the short term,but its long-term M&A performance show good results and stil l have more room for development.From the evaluation results of the event study method,it is clear that the M&A event in general doesn’t have a strong short-term market reaction and has little impact on stock returns;from the evaluation results of the balanced scorecard,the overall effect of this M&A by the company is above the average,which is basically satisfactory.