Case Analysis of Mergers and Acquisitions Failure of CDL Acquired of Sincere Property Group

Abstract

In order to create value and increase profits, improve market share and improve competitiveness to achieve strategic goals. Many enterprises choose to carry out business merger to achieve corporate profit expansion and enhance corporate competitiveness and profitability. However, there are also many failed mergers and acquisitions due to various reasons. This paper takes the failure of CDL's M&A of Sincere property Group as the research object, and deeply investigates the reasons for its failure, which has certain practical significance and research value. In the early stage of the case analysis, we introduced the basic situation of the two companies and the background of the merger. In the core part of the case study, we analyze the challenges in M&A. Then we analyze the reasons for the failure of merger and acquisition and summarized the case. Finally, this paper gives some suggestions for the reasons of failure. In the case of enterprise merger and acquisition, merger failure is not rare, and the case of CDL Sincere property Group failure is a very well-known negative case. A study of this case can provide a reference for other merger and acquisition cases, strengthen the vigilance of the purchaser, pay attention to all stages and links of the merger and acquisition, to avoid such a huge loss.