DiWangJieJu Merger And Acquisition Of OuShenNuo In The Background Of Big Home

M&A is a booster for industrial adjustment and an effective way to optimize resource allocation.In the era of supply-side reform,facing the dilemma of low market concentration in the home building materials industry and the market share of domestic high-end home building materials being squeezed by foreign companies,China's building materials and home furnishing industry faces rare opportunities and huge challenges.DiWangJieJu acquired OuShenNuo as the first M&A case of home building materials enterprise in 2017.It belongs to the merger and reorganization of domestic home building materials enterprises,and has the concept of Big Home,snake swallow elephant,A-share listed company merger and acquisition of new three board company,etc.The logo is of great significance from the perspective of M&A motivation.In the first part,the thesis elaborates on the related research methods of domestic and foreign mergers and acquisitions and the case study method used in this paper.The second part discusses the background of the case company and the details and precautions in the process of merger and acquisition,and analyzes the motivation of the merger.In the third part,the performance evaluation of this M&A activity was carried out.The financial performance method was used to make a certain financial analysis on the changes of indicators before and after the merger and the comparison with the industry average.At the same time,from the perspective of industry performance The industry status before and after the merger has been analyzed.The strategic layout of DiWangJieJu whose acquisition of OuShenNuo has greatly enhanced its industry competitiveness and increased profitability.Although the anti-risk ability has declined,it is within the controllable range and then combined.The macro perspective and industry dynamics summarize the successes and shortcomings in the M&A activities of this case.In the last part of the paper,the corresponding conclusions and suggestions for future M&A activities of home building materials companies under the background of Big Home are given.The main conclusions are as follows: The DiWangJieJu has expanded its competitiveness in the home building materials industry,broadened the company's industrial structure and diversified development;The synergy effect was exerted well,which led to the increase in the performance of OuShenNuo.The performance of OuShennuo was counteracted by DiWangJieJu,which made the performance of DiWangJieJu also grow rapidly,achieving “1+1>2”.In the process of mergers and acquisitions,the paper also gives corresponding suggestions: On the micro level,in the M&A activities of home building materials enterprises,we must first clear the motivation of M&A,reasonably select the target enterprises,and pay attention to post-consolidation after the completion of M&A.To fully play the role of synergy,while at the same time pay attention to the risk of mergers and acquisitions.From a macro perspective,companies need to pay attention to the impact of environmental changes such as macro policies and markets,and make long-term plans.