Merger &Acquisition is a way to allocate resources in the capital market, and also a way for enterprises to expand scale. Since the real estate industry has a prominent position in the national economy, and M&A events in the real estate industry are also increasing year by year, it is worth studying whether M&A can improve the performance of M&A enterprises. From the perspective of horizontal M&A of real estate enterprises, this paper studies whether the short-term and long-term performance of listed real estate enterprises can be improved under horizontal M&A. First, this paper studies the background of M&A, the performance of M&A and the motivation of M&A relate to the theory and analyzes development of the real estate industry in recent years. After that, this paper begins to conduct an empirical study on the short-term performance and the long-term performance of horizontal M&A of listed real estate enterprises. This paper selects the horizontal M&A of real estate enterprises occurred in 2016 as the research samples. The short-term research calculates the CAR of each day of the event window by using the method of event studying, and compares its change. The long-term research uses the method of factors studying to calculate the comprehensive performance score of each year before and after M&A. The research result of this paper shows that although horizontal M&A of real estate companies brings positive cumulative abnormal return in the short term, the CAR is very small. In the long term, the comprehensive performance scores of horizontal M&A of real estate companies decline and then rise slowly before and after M&A. Besides, in this paper, starting from the features of the real estate industry, I analysis the driving factors of M&A of the real estate and build the M &A performance evaluation system of real estate enterprises. Using the case method, with the help of the M&A performance evaluation system, this paper analyzed the performance of Chinese real estate enterprises-Vanke after M&A from short-term and long-term performance, finding out the factors to drive the improvement of performance of vanke through M&A. According to the analysis of the case, a series of suggestions are proposed from internal and external to improve performance of real estate enterprise after M&A of our country.Finally, this paper puts forward some suggestions to the participants of M&A. For example, listed real estate enterprises should pay attention to the cost of M&A and resource integration; Government departments should pay attention to marketization; Intermediary agent should be diligent and responsible. / Business Administration/Finance

With the gradual expansion of China's economy, the demand for innovation and growth of China’s companies is increasing. Traditional internal research and development (R&D) and iterative product and service development are no longer sufficient to meet the fierce market competition. More and more companies are seeking breakthrough growth of overall technology, brand, and service. Therefore, mergers & acquisitions (M&A) have become a common business activity for China’s companies. The motivation of company’s M&A is complex, and as M&A laws in China and worldwide become more complicated, how to make rational and rapid M&A that can achieve strategic upgrading of enterprises has become a research issue of concern for Chinese economic, financial, accounting, and legal disciplines, etc. As a basic industry, Chinese pharmaceutical industry has not yet taken a dominant position in the world. Due to the intertwining of multiple disciplines and complex background information, the impact of M&A transaction size on the innovation performance of pharmaceutical companies has yet to be studied.Focusing on the two hot spots: M&A and innovation, in the context of China's economic transformation and upgrading, this dissertation explores the impact of M&A on innovation based on the current situation analysis and theoretical analysis, and deeply studies and reveals the mechanism and effect of M&A transaction size on company innovation. 281 M&A data of 58 listed companies in China's healthcare industry from 2008 to 2017 was collected and regression analysis was performed to examine the impact of M&A transaction size on the innovation level of companies in terms of two aspects: the number of patent applications and the number of patents granted, and on three levels: invention patents, utility model patents and design patents. The results of the research show that: M&A transaction size promotes the growth of the number of patent applications and patents granted and has a significant positive effect on enterprise innovation; and M&A transaction size has contributed to the increase of the number of utility model patent applications and patents granted. In general, the innovation performance of M&A transaction size in utility model patents is better than that in invention patents with higher technological elements. Further mechanism examination results show that the innovation performance of a company after a bigger M&A transaction is influenced by its absorptive capacity: the stronger its absorptive capacity, the more opportunities it has to absorb and transform the technologies and knowledge of an acquired enterprise into its own. Through learning and imitation, it realizes the transformation and innovation of the technologies obtained through M&A, ultimately enhancing its innovation capability. / Business Administration/Finance

The emergence of cultural industry is strongly supported by the Chinese government. Policy support andtechnology-driven considerations have stimulatedrapid mergers and acquisitions (M&As) in China’s cultural industry. The burgeoning scale of industrial M&As, however, has not necessarily improved the quality. In the case of impending market saturation, advancing M&Asin violation of market rules may lead to bubble accumulation in the capital market. In addition, dominated by intangible assets, the cultural industry features relatively unstable products and immature industries, which can lead to a deviation in the valuation of M&A assets from the real value. Once the M&A targetexperiences operational issues, it will suffer greater losses than those brought by M&Asin traditional industries. Therefore, the cultural industry is exposed toa high valuation risk. In addition, its structure differs greatly from other industries because it has a high degree of product line differentiation, which makesit difficult for value chain coupling after companies in the cultural industry merge with other industries. There is also much uncertainty about cross-industry M&A stimulating performance. These uncertainties may hinder the growth of China’s cultural industry. Therefore, mystudy focuses on the cultural industry. This study examines the M&A performance of listed companies in China’s cultural industry through empirical analysis and provides suggestions for its development.Thisstudy first discusses the main types, characteristics,and reasons for surge in M&Asin China’s cultural industry, and then empiricallyanalyzes the M&A performance of listed companies in the cultural industry from the perspectives of stock performance and financial returns. On the one hand, based on the event studymethod, this empirical study analyzes the impacts of M&Asin the cultural industry on the short-term and long-term abnormal stock return of theactiveacquirerthrough the CAPM modelandthe Fama–French 3-factormodel; on the other hand, an empirical analysis is made on the impacts of M&Asin cultural industry on the company’s future financial return using the propensity score matchingand difference-in-difference (DID)methods.This study finds that the short-term abnormal return after the M&Asin cultural industry is iiisignificant, but not the long-term cumulative abnormal stock returns. Therefore, it is concluded that the impact of M&Asof listed companies in cultural industry on short-term abnormal stock returns is only a result of market overreaction, and the market will be rational in the long run. This study also examines whether the M&A is cross-industry or whether the acquirer is a cultural enterprise has anysignificant impact on the long-term cumulative abnormal stock returns.Concurrently, the study examines the factors leading to abnormal returns from M&As, and finds from the analysis on factors leading to short-term abnormal returns that the size of market value, the extent of valuation,and whether the company is a state-owned company have a significant impact on the short-term abnormal market returns from M&As.On the other hand, this study finds that the financial returns of sample companies have not improved after M&Asin cultural industry, but have declined instead. This is likely because the two companies cannot coordinate andmerge well after M&A, which instead increases frictions and results in a decline in financial returns.Based on the features of M&Asin China’s cultural industry and the empirical results of the decline in financial returns of listed companies after M&Asin cultural industry, this study suggests plausibleimprovementsin M&A performance of listed companies in China’s cultural industryat the level of government, intermediary agent, industry guidance and enterprise.This study hasfour chapters: Chapter 1 is the introduction, which introduces the research background, methods, significance,and related literature review. Chapter 2 introduces the current situation of M&Asin China’s cultural industryand presents an analysis of the main types and characteristics of and reasons behind the new wave of M&Asin China’s cultural industry. Chapter 3 presents the empirical analysis. Based on various empirical research methods, this study analyzes the impacts of M&Asin cultural industry on the short-term and long-term abnormal stock returns and financial returns. Chapter 4 concludesand makes suggestions for policy makers. / Business Administration/Finance

During the construction of the new 3 story, 25,000+ square foot police station, a decision was made to participate in the LEED program to ensure the building had low operating costs, reduced emissions, conserved water and overall energy. The design of the building includes a primary-secondary ground source heat pump (GSHP) loop, a Dedicated Outside Air System (DOAS) with Energy Recovery Ventilation (ERV) wheel, all controlled by CO2 monitoring through Demand Control Ventilation (DCV) to supply heat pumps located in each space; all monitored by a Building Automation System (BAS). The building’s future energy performance was predicted through an energy simulation model (ESM) software. Measurement and verification (M&V) was then performed on the building to determine its actual energy performance. Data was collected through the building’s electrical meters, the building automation system (BAS), and other techniques to determine discrepancies. Installed electrical submetering along with ESM results helped identify faults on a subcomponent level. This bottom up approach helped drive a successful retro-commissioning of the building systems reducing energy consumption. This thesis will detail a methodology for retro-commissioning of underperforming new-construction buildings. Optimization of the building’s systems will be facilitated through utilization of the M&V and ESM data. Discussed will be techniques and strategies to benchmark the building’s systems, providing utility from the retro-commissioning and M&V results, to determine the value of the ESM. Last will be to discuss and demonstrate the future benefits of utilizing this real-time data to help building operators reduce, manage, and sustain their energy consumption profiles.

Background: Regulation (EU) 2019/452 provides a European Union framework for the screening of direct investments from non-EU countries on the grounds of security or public order. It has taken effect for three years; however, Sweden is at a stage of preparatory to enact such a mechanism. This is targeted at foreign direct investments from third-world countries, Chinese companies being one of the main investors in Sweden. However, there are conflicting views on this new regulation and an overall lack of research regarding how the Regulation (EU) 2019/452 may potentially impact Chinese outbound foreign direct investment in Sweden due to the highly dynamic legal and business environment that exists in the EU and China, respectively. Sweden is one of the EU member states that has been attracting Chinese FDI in the past decade – for example, many famous Swedish companies have been acquired partially or wholly, such as Volvo Cars, Volvo AB, Polestar, Oatly, Spotify, Nevs and Acne. Purpose: Our research focus of the relationship between the new EU FDI screening regulation and China outward FDI to EU. As China as a rising player in EU, it is interesting to assess whether Chinese investors are potentially affected by the EU FDI Screening from Sweden point of view.  Method: We are mainly conducting quantitative and qualitative analysis based on the historical 65 M&A cases happened from 2002 to 2019, including 51 Chinese majority acquisitions of Swedish parent companies and 14 minority acquisitions, which these mino­rity holdings are included, as many are large investments and may lead to an investor’s becoming the single largest owner in a company. The identified M&A cases are analysed and categorized according to the Regulation Article 4’s specific requirement. We analyse various aspects to get insights of the potential impacts of the Regulation to China FDI in Sweden. Conclusion:  In Sweden, we believe that the Regulation and the upcoming screening mechanism may not affect Chinese FDI in Sweden drastically due to the changes in Chinese FDI strategy and motivations from cross-border M&A to greenfield investment, and change in the role of Chinese SOEs acquiring from strategic assets to industrial and consumer advance technology. And other inferred likelihood may include, the possibility of circumventing FDI screening through portfolio investment and direct ownership and transfer of technology and assets.

Background: In year 2021 M&A deals accounted for 5.1 trillion US dollars which crushed the last record of 4.1 trillion US dollars. The strategy of creating shareholder value by acquiring, merging or through other restructuring activities is accelerating at an increasing pace. An already extensive research within M&A are supplemented by the day. Still, existing research has difficulty explaining in-depth why M&A deals tend to fail.   Purpose: The aim this thesis is to form an in-depth understanding of the M&A process with investigations and comparisons of motives for and success factors of mergers and acquisitions. The objective is also to describe the due diligence process and its impact on the integration phase with the ambition to provide additional aspects and differentiating explanations from the ones already established.   Method: By highlighting theorists view on motives, success factors, due diligence and importance of an integration strategy within M&A the question occurs, how does some of the companies active within M&A reason in this subject? The reasoning has been studied empirically through interviews with three respondents with significant positions at three different companies listed at the Swedish stock market and active within M&A. To contribute to an in-depth understanding of our research aim interviews were held to create discussions beyond only answering our research questions.   Empirical results and analysis: The empirical result received from our interviews has been compiled to present the thoughts and the discussions with our respondents. The analysis partly discusses the similarities and differences between the theorists and our respondents. Further the analysis wants to contribute to in-depth understanding of the company’s thoughts and opinions within our research aim.     Conclusion: The study indicates a variation of motives of acquiring another company. The empirical findings and the theoretical framework suggest a wider product range, personal benefits for managers, increased market power and improved economic performance as the most prominent motives. Asking theorists and our respondents of what different motives there are of acquiring other companies may consequently result in different responses. A significant factor determining whether a transaction has been successful or not are accomplishments of the financial objectives. The empirical results also indicate that synergy effects and integration goals could be considered relevant success factors as well. Theorists claim that the success factors vary greatly depending on who is being asked but agrees with the empirical findings of a repetitive success factor when asking a manager being increased revenue and profitability. Due diligence conducted by the acquirer prior to an acquisition also varies greatly depending on the reason for acquiring and the extent of the target company. However, the empirical investigation exhibits three aspects always being included which is an assessment of accounting, financial and legal aspects. Issues concerning the integration phase is incorporated in only one of the three studied company’s due diligence processes. This company allocates a separate team executing both the due diligence and the post- acquisition integration of the targeted company. Considering integrational aspects in the due diligence phase entails assessments of hiring conditions, IT infrastructure and financial reporting. The empirical findings are fragmented concerning considerations of integration already in the due diligence phase but is unanimous that a smooth integration is of utmost importance for the success of the transaction.

This is a quantitative thesis of the Swedish biotech industry, that intends to study what effect M&A activity has on firms R&D intensity. It is an important question as the market demand is changing rapidly and puts high pressure on companies to constantly deliver new innovations. The study is based on panel data and ordinary least squares regressions. The findings are similar to previous studies, which points towards both positive and negative directions when referring to M&A activity and its impact on R&D intensity. This thesis show lack of statistical significant results when it comes to how R&D intensity (R&D intensity is defined as the ratio of R&D expenditure to total sales) is affected by M&A activity.

Denna uppsats undersöker hur finansiell och icke-finansiell styrinformation i förvärvat bolag påverkar den operationella due diligencen samt vilka grundläggande förutsättningar som krävs för att bedriva en sådan. Anledningen till att undersökningen fokuserar på den operationella delen är, på grund av att det inte finns en praxis som går att applicera på alla företag. Detta eftersom värdeskapande i företag, även de som verkar i samma bransch, ofta skiljer sig åt. Resultatet visade att det i vissa fall finns förutsättningar som behöver uppfyllas för att en operationell due diligence ska genomföras på bästa sätt. Det är kunskap och erfarenhet från den specifika typen av företag som besiktigas, att man är operativt närvarande hos företaget samt att man gör egna bedömningar. Med hänsyn till dessa faktorer förefaller det i vissa due diligence processer att man får en rättvis bild av företagets verksamhet och värdeskapande. Den finansiella styrinformationen skapar en ekonomisk översikt av verksamheten. Med denna information kan man prognostisera kalkyler och bilda sig en uppfattning om hur verksamheten kan utvecklas finansiellt. Med stöd i teorin och resultatet har framtidsutsikterna i företaget visat sig viktiga, då många förvärv verkar ske till följd av det. Den icke-finansiella styrinformationen i företag har genom undersökningen framgått vara svårare att mäta än den finansiella. I denna typ av styrinformation behandlas exempelvis företagskultur, arbetssätt, företagsstruktur och rutiner inom företaget. I de fall där förvärvet ska integreras in i det förvärvade bolagets egna verksamhet eller som helhet i moderbolaget har resultaten visat att icke-finansiell styrinformation är extra viktig. Därför är det i dessa fall av förvärv av extra vikt att göra en grundlig undersökning av HR-aspekter.

The primary reason for mergers and acquisitions is to achieve synergy and establish competitive advantages. A firms’ innovation in form of intangible assets gets accumulated over time depending upon its R&D intensity. Such a strategic bundle of intangible assets that a firm possesses is an indicator of future synergies if the firm were to merge. The current study examines whether intangible intensive firms more likely to make acquisitions or are more likely to be acquired and how the market reacts to M&A deals involving intangible intensive acquirers and targets. We explore these issues with a sample of U.S. M&A deals over a period of 2001-2017. We find that intangible assets serve as one of the primary motives for the M&A and are the drivers of M&A activity in recent times. The results from the event study show that target firms’ intangible assets have a significant negative effect on target firms’ cumulative abnormal returns. Subsequently, we carry out further analyses to understand various drivers of market reaction to M&A deals. We find that, for target firms, the relation between target firms’ intangible assets and market reaction is positively influenced by the use of cash and negatively impacted when the target firm is from high-tech industry. For the acquiring firms, we find that the relation between acquirer firms’ intangible assets and market reaction is negatively impacted when the acquirer is from high-tech industry and positively impacted when a public target is acquired. It appears that market reactions to the acquisition of high intangible targets are primarily driven by investor skepticism about the prospects of the deal. Lastly, the study does not find any significant effect of (mis)valuation on M&A deals by intangible intensive firms.

Purpose: This paper aims to shed light on the process involved in acquiring and integrating complementary knowledge. The process model is based on a theoretical review of literature on complementarity in M&A’s, firm relatedness and knowledge integration. This literature acts as a foundation to construct the proposed model combined with a process oriented semi-structured interview based on a single case where we found complementary knowledge was integrated under conditions that would be challenging in this regard. The literature review provides the theoretical foundation and the process-oriented interview provides the process of implementing and understanding the theory. Therefore the following study should be considered a contribution to guide further research into this phenomena, which is currently underexplored especially from a qualitative point of view.  Method: The theoretical study utilizes a synthesizing approach in connecting the literature findings and the empirical study adopts a qualitative lens by conducting three phases of study: pre-study,single case study and expert interviews. The primary data was collected through semi-structured interviews with M&A managers, and the sampling method is purposive.  Findings: On a theoretical perspective we found that low external relatedness acts as a source of complementarity and low internal relatedness creates inefficiency in exploiting those complementary differences within knowledge. Allowing autonomy to the acquired firm is best when external relatedness is low as to maintain the differences that contribute to complementarity. On the contrary, if internal relatedness is low we find that high integration is recommended to ensure that internal relatedness is increased and efficiency issues are limited. When internal relatedness and external relatedness are both low, the required approach is a balance between autonomy and integration, described as symbiosis.  From the empirical study, we conclude that the integration approach becomes an iterative process where the knowledge integration process plays an important role in learning to understand the acquired firm. In short, symbiosis requires close interaction and observation and an established process of integrating new knowledge to get familiar with the acquired firm.