Study On The Performance Evaluation Of M&A Of Real Estate Enterprise Based On Balanced Scorecard

In recent years,with the rapid growth of China’s economy,the real estate industry has shown a rapid development trend,the industry’s added value accounted for a large proportion of gross domestic product(GDP)and increased year by year,the industry’s overall contribution to China’s economic growth also continue to increase,and has now become one of the pillar industries of the national economy.However,due to the continued rise in house prices,the Government took measures to increase the macro-control efforts,coupled with tight monetary policy and the transformation of land transfer mode makes China’s real estate industry is difficult to take the land,the shortage of funds and other issues,thus exacerbating the degree of competition between industries,but also further promote the integration of the industry mergers and acquisitions process,set off a new wave of mergers and acquisitions,especially between listed companies.Real estate as a capital-intensive industries,with its particularity,the industry through mergers and acquisitions can obtain land,capital and other important resources,in order to achieve enterprise scale expansion,economic coordination,improve market share and core competitiveness,while the implementation of mergers and acquisitions can enhance the concentration of the entire industry to promote the optimization and upgrade the industrial structure.The increasing frequency of mergers and acquisitions has prompted more and more domestic and foreign scholars began to carry out the related mergers and acquisitions theoretical research.Because of the earlier start of foreign research,the theory is relatively mature;However,the China’s academic research on mergers and acquisitions theory is still in the initial stage,and the conclusions are inconsistent.According to statistics,most of the existing research is based on the entire industry mergers and acquisitions activities or a certain period of time,a case of mergers and acquisitions in a region as a sample,or in the same industry in different ways of mergers and acquisitions as a research object to analysis.This paper adopts the case study method,taking the merging and reorganization behavior of a real estate listed company as an example,and analyzes the performance of the listed company in real estate industry in detail with the method of normative research.In order to improve the success rate of M&A integration,enterprises should strengthen the importance of M&A performance and build a scientific,reasonable and effective performance evaluation system.On the basis of introducing the feasibility and advantage of using the Balanced Scorecard in the case study,this paper chooses the relevant key indexes of financial dimension,customer dimension,internal business process dimension and learning and growth dimension,in order to analysis and evaluate the mergers and acquisitions integration performance.After the collapse trend in 2015,China’s M&A market is of the overall trend of stabilizing decline in 2016,mainly due to the reform of state-owned enterprises,the increased macro-control efforts and the enhanced risk control and other factors,but the overall trend is still rising.According to the relevant data,in 2016,the number of transactions in China’s M&A market was 8380,and the transaction size was US $540.62 billion.Among them,the real estate industry has completed 197 cases from inside and outside china,involving the amount of 401.4 billion yuan,the number of mergers and acquisitions among housing companies has risen rapidly.In this context of mergers and acquisitions,this article will start from the characteristics of the real estate industry,on the basis of elaborating the theory of M&A,selected the case study of the real estate listed company Vanke mergers and acquisitions Nanning real estate in 2012 as an example,and analysis the developing situation of the real estate industry and the reasons for the implementation of mergers and acquisitions,and give a detailed introduction of the acquisition process and the integration of the merger.Through the construction of Vanke enterprises M&A performance evaluation system,and take use of analytic hierarchy process to determine the weight of the index,in order to reach a comprehensive evaluation,and then put forward targeted M&A recommendations.