Research On The Value Creation Of N Property Management Company’s Continuous Mergers And Acquisitions

As market competition continues to intensify,it is often difficult for companies to achieve rapid development if they rely solely on themselves to dominate the market,so more and more companies are choosing to adopt different means to improve their core competitiveness.The property management industry is one of the new and rapidly developing industries in China,and has now become an important part of real estate consumption with its corporate and branded management.In this "scale first" industry,mergers and acquisitions have become the best strategy for rapid expansion,and waves of successive mergers and acquisitions have begun to emerge.In recent years,N Property Management has made M&A a key part of its expansion strategy,ranking among the top listed property management companies in terms of the number and size of M&A from2020 to 2022.Therefore,this paper uses a combination of literature and case studies to examine the motivations and approaches of successive M&As and their value-creating effects,using N Property Management Enterprise as an example.N Property Management Enterprise is representative of Chinese property management companies that have chosen to expand their scale and develop their brand strategy through successive M&As,and the motivations and value-creating effects behind this behaviour deserve attention.First,this paper outlines the background and significance of the study and collates the relevant theoretical foundations.Next,it introduces the successive mergers and acquisitions of N property management companies,and analyses step-by-step the motivations for successive mergers and acquisitions,which are mainly influenced by the policy environment,competitive market pressure and corporate self-drive.Then,it uses various methods such as the event study method based on short-term market value,the financial performance evaluation method with financial indicators and a combination of qualitative and quantitative methods to study the effect of their successive mergers and acquisitions in terms of value creation.The analysis of this paper finds that N property management companies suffer from the problems of too frequent mergers and acquisitions,potential goodwill impairment risk and declining profitability in the value creation of successive mergers and acquisitions.Finally,the conclusions and implications of this paper are drawn.The study finds that N Property Management’s target strategy of successive M&As has basically been achieved,which is conducive to its national strategic layout and the enhancement of its brand effect,and the results of M&As are in line with expectations and the market response is relatively positive.Based on this,the paper makes recommendations and draws relevant conclusions with a view to providing realistic benchmarks and positive implications for similar enterprises in China.