Case Study On M & A Performance Of Real Estate Enterprises In China

Mergers and acquisitions(M & A) is known as an effective way to make scale expansion, economic coordinated, enhance competitiveness of the enterprise. On the point view of economic market, M & A is also an important means to improve the disposition of social resource by the way of survival of the fittest. The successful M & A can acquire the benefits of enterprise and social economy. On the country, falling M & A could destroy the value of enterprise and waste the social resource. Enterprise M & A performance evaluation is an major way to judge weather the M & A is success. M & A activities lead many scholars, home and abroad,to deeply discuss the performance of the activities from different perspectives with different methods. But the performance and effect of the M & A activities are uncertain in all these studies. When China’ s real estate companies’ mergers and acquisitions are active, this paper carry on a research on the performance of M & A of the listed real estate companies and the affecting factors on the performance and give some relevant strategies accordingly. This has practical and theoretical value.Our country has made tremendous achievements in the real estate industry after 20 years of development, real estate has become a pillar industry. However, the real estate industry is still exist many problems such as the lower level of scale of real estate industry and the development of real estate enterprises is under restrictions. Due to the influence of state macro-control, there appears a M & A waves of real estate industry in Chinese market since 2011. Based on the background, this paper make YMIC Co, LTD as studying object, to analyzes it’s eight M & A events which occurred during 2010 to 2013. According on different research perspective, this paper use three mainly categories, namely even study methodology, accounting measure methodology and EVA methodology to measure the performance of those M & A events.Draws the following conclusion: the market effects of the M & A are almost significant in short-terms, but all are non-significant in long-terms. The variation trend of M & A performance based on the angle of financial data is decreased first and then increased during the period. Then we find out related some facts which make an influence on M & A performance such as the status and characteristics of real estate and motivation of M & A. This paper also find point out some issues of those three methodologies that is even study methodology is very useful on study a solo M & A performance. accounting measure methodology and EVA methodology can only study M & A performance as group. Finally, this paper gives some advice to improve the M & A performance from interior and exterior level.