The amount of M&A received by material enterprises in the first half of the year exceeded that of last year's "Big Fish eat small fish", which caused indigestion?

in the first half of this year, property companies were busy collecting mergers and acquisitions while going public. There are both "whale swallowing" between listed property companies and "big fish eat small fish". In the first half of this year, the total amount of mergers and acquisitions in the property industry has exceeded that of last year.

at present, scale expansion is still the core strategy of the development of property service enterprises, and relying on mergers and acquisitions to increase the scale in a short time is conducive to quickly cutting into new tracks and expanding new formats. However, the insiders believe that the acquisition and merger of property enterprises are also facing blind expansion, and it is easy to fall into the development trap of increasing scale but not increasing efficiency. High-quality growth should become an important proposition in the property industry at present.

in the first half of the year, there were more than 4 cases of mergers and acquisitions of physical enterprises

The biggest acquisition case in the property industry was Country Garden Services' acquisition of part of the equity of Blu-ray Garbo, involving 4.964 billion yuan. At present, the process of "whale swallowing" between listed companies is not smooth and is still in progress.

on July 2, both parties announced that the delisting resolution was approved, but the delisting acceptance conditions were not met. Therefore, the offer was postponed to July 16th. After the delisting acceptance conditions are reached, Blu-ray Garbo, which has been listed for more than one year, will be delisted from the Stock Exchange.

before that, Country Garden Services launched a cash tender offer for Blu-ray Garbo, and revoked the listing status of Blu-ray Garbo Services. After the acquisition is completed, Blu-ray Garbo will become a subsidiary of Country Garden Services and consolidate its financial statements.

supported by the continuous scale expansion, in late May, the proceeds from the service placement of Country Garden exceeded HK$ 1 billion, breaking the record of single financing in the property industry.

in fact, at the same time of large-scale mergers and acquisitions by large-scale real estate enterprises, mergers and acquisitions among small and medium-sized real estate enterprises have also continued.

On July 5th, Greenland Holdings plans to transfer 1% equity of its wholly-owned subsidiary, Lvmin Property, to Fantasia at a consideration of 1.26 billion yuan. On July 2nd, Hellenborg Property acquired 1% equity of Yileju Property, while more than one month ago (May 17th), Hellenborg Property acquired 1% equity of Zhejiang Lushang Property.

on July 1st, Zhongliang Property acquired 8% equity of Jiangxi Huaxia Property. On June 29th, Hejing Youhuo announced that it agreed to acquire 8% equity of Shanghai Shenqin Property by an indirect wholly-owned subsidiary at a consideration of 498 million yuan. On June 19th, Jinke Services spent 75.91 million yuan to acquire Chongqing Meilishan Property ...

For the acquisition and merger of the property industry in the first half of the year, Zhongzhi Research Institute concluded that expanding the scale is still the core strategy for the development of property service enterprises. Many enterprises, especially large enterprises, have begun to formulate and announce the growth targets of management scale. For example, Evergrande Property set a target of not less than 3 million square meters of monthly outreach area in early 221; Hejing Youhuo said that the scale will reach 2 million square meters in 221, and the area under management is expected to increase tenfold in the next three years.

it is worth noting that most mergers and acquisitions in the property industry are related to listed property companies. In the first half of 221, although some listed companies reduced the proportion of listed proceeds used for mergers and acquisitions, mergers and acquisitions remained a popular choice for most listed properties.

overall, according to the incomplete statistics of the China Central Index Research Institute, there were more than 4 cases of M&A of property companies in the first half of this year.

according to the incomplete statistics of Kerry, in less than half a year in 221, the total amount of M&A in the property management industry has reached nearly 13.3 billion yuan, exceeding the 1 billion yuan in 22. Moreover, judging from the average transaction amount of major M&A cases, the average transaction amount of M&A events in 221 reached 698 million yuan. Even if the transaction amount of Blu-ray Garbo service acquired by Country Garden Service was excluded, the average transaction amount still reached 467 million yuan, which was significantly higher than 285 million yuan in 22.

M&A extends to multiple formats

Property companies are keen on M&A, not only because they can expand the scale of property management in a short time, but also make up for the gaps in geographical areas and formats, enrich management formats, realize the coordinated development of property management portfolios with multiple formats, and then achieve high-quality and rapid growth.

According to the analysts of the Central Finger Research Institute, the current M&A among property enterprises is no longer limited to the traditional residential and commercial property business, but presents more extension trends, especially the sanitation business and the public service business, which have become the hot targets for property enterprises to compete for mergers and acquisitions. In order to achieve the purpose of enriching the management format, supplementing the shortcomings of regional competition and optimizing the strategic layout in multiple dimensions.

as early as January 29th, Evergrande announced that it had won 1% equity of Asia Pacific Hotel Property with a total consideration of 1.5 billion yuan. At that time, Evergrande Property said that through the acquisition, it could complement the existing business types and business layout of the Group, resulting in synergy and accelerating the coverage of the company's entire business format and the entire industrial chain layout.

in the near future, such merger and acquisition cases are not uncommon. On June 23, Color Life acquired a 49% stake in the property of Darwin International Hotel in Beijing. On June 23rd, Huafa Property acquired 1% equity of Guangdong Yuejian Security Service.

On June 21st, Financial Street Property plans to acquire 65% equity of Zhuzhou Property Management Company for 132 million yuan. Zhuzhou Hongda Property has rich operation and management experience and market competitiveness in the property management industry, especially in the fields of urban sanitation and urban municipal services.

in addition to mergers and acquisitions in various formats, cooperation between enterprises is also unprecedented. Among them, Financial Street Property and Wuyi Property jointly established a new property company, holding 4% of the shares. The Highland City Service and Taian Huaxin have reached a strategic cooperation, which will open up more cooperation scenarios in the field of hospital property.

On July 5th, Greenland Holdings announced that Greenland Holdings signed a Supplementary Agreement to the Cooperation Framework Agreement with Ya Life and Agile, that is, Ya Life will get 5 million square meters of property service area from Greenland Holdings every year from 223 to 225.

Industry: The vigilance of merger and acquisition has fallen into blind expansion

At present, the merger and acquisition between property management enterprises is becoming more and more fierce. "eat small fish the Big Fish" and "Big Fish Eat Big Fish" have become the norm.

According to the analysts of the Central Finger Research Institute, the differentiation of the property sector is becoming increasingly prominent, and the competition tends to be fierce, so it is necessary to establish a sense of crisis. The competition pattern of listed companies in the property sector is constantly evolving, which indicates that the industry is facing differentiation and the future integration will be intensified.

In this regard, Kerry analysts also believe that the situation of many small and medium-sized property management enterprises is getting more and more difficult. Many small and medium-sized property enterprises usually rely on the project delivery of the parent company, and their own development will be largely limited by the scale of related housing enterprises. In addition, because leading enterprises have accelerated the pace of third-party outreach in recent years, it is difficult for small and medium-sized enterprises to win in all kinds of bidding, which further limits the expansion of scale.

for property companies with strong financial strength, as an important part of scale expansion, acquisition and merger is undoubtedly the best means for enterprises to rapidly expand their scale and cut into new formats and new businesses, and its key is self-evident.

However, analysts of the China Central Finger Research Institute also said that mergers and acquisitions are also facing blind expansion, and it is easy to fall into the development trap of increasing scale but not increasing efficiency. For example, the customer loyalty in the newly acquired management area is low, especially in the initial running-in stage, which requires more costs. Therefore, although the cost of market-oriented expansion and the formation of new teams is saved, how to quickly integrate the business teams of newly acquired projects into the company management network and improve management efficiency has become a new topic for property enterprises to consider.

in fact, at present, high-quality increase has not only become the motto of housing enterprises, but also the pursuit of many property companies. In this regard, Niu Xiaojuan, deputy general manager of the middle finger property division, believes that with the continuous maturity of the market, property service enterprises can also expand their projects through the whole Committee and bidding, and at the same time effectively reduce costs. Therefore, when the enterprise develops to a certain scale, the brand expansion will be strengthened and the development model will be more diversified.