Rolandburg: Enterprise mergers and acquisitions cannot be trendy or cheap

Bouée, president of Roland Berger Asia, said that mergers and acquisitions cannot be trendy cheap and must take into account the needs of their own development strategies. (Source: Sina financial Peng photo) April 9 Morning News was hired by Geely to buy Volvo consulting company Roland.　　Roland Berger, Asia's president Bouée Charles-edouard Bouee, said in a dialogue with Sina finance that Chinese companies have been doing so frequently, but that mergers and acquisitions should be based on real demand, not trendy or cheap. "Mergers are not a trend or a trend, but should be part of a national or corporate development strategy," bouée stressed.　　He told Sina Finance that in the past quarter, Chinese companies have been doing a lot of overseas mergers and acquisitions, mainly in three cases, based on the needs of China's countries and people, such as Chinalco's stake in Rio Tinto, PetroChina and Shell for Arrow, and most of them resource companies. A typical example of the second scenario is Geely's acquisition of Volvo, mainly based on the company's consideration of long-term development strategies. The bouée table points out that mergers and acquisitions are expensive or cheap to consider, considering what functions the acquisition enterprise can offer itself.　　But roughly speaking, he thinks the price of overseas mergers and acquisitions two years ago is quite high, and most companies now have more reasonable prices. Bouée that the majority of Chinese enterprises are not in order to open up overseas markets, the focus is still domestic, mergers and acquisitions are based on the needs of the domestic market.　　He thinks that enterprises should first consider whether the overseas enterprises can manage effectively, and consider whether the basis of their own in mainland China is abundant, and whether the local laws and labor force can be grasped well, and how the two enterprises integrate should be carefully considered and finally the question of whether the price is reasonable. In addition, for many companies in the mainland to invest in real estate companies bubble risk, bouée, whether there is a bubble needs to be contrasted, China's first-tier city real estate prices, although higher than the popular income, but compared with other major cities in the world is relatively cheap.　　"We judged that house prices would rise at least for 25," he said, and that the main driver of growth would continue to be strong, driven by urbanisation. But he also pointed out that, because of the government's regulation of real estate policies, short-term real estate prices will fluctuate, "if it is to live there is no doubt can buy, investment will have to carefully consider the specific quality of housing, a lot of details." "(Peng from Boao)