Research On The Financial Performance Of M&A Of Water Business Doctor

With the deterioration of the environment and the lack of energy,the scarcity of resources highlights the contradictions in the current economic and social development in China.To solve the problem of energy saving and environmental protection in the process of economic development is an important and urgent task for the expansion of domestic demand,steady growth,structural adjustment and the promotion of China's economic upgrading.Therefore accelerating the development of energy-saving environmental protection industry,changing the direction of capital investment and consumption patterns,promoting industrial upgrading and transforming the country's economic development,forming a new economic growth point,to achieve sustainable economic development,promoting energy-saving emission reduction and improving people's livelihood,has very important significance.As strategic emerging industries,facing the industrial strategic reform and government policy support in China,grasping the development opportunities of energy saving and environmental protection,the environmental protection industry actively integrate the industrial chain and build a large platform of environmental protection and energy saving,to expand the business scale.In recent years,the number of mergers and acquisitions of energy saving and environmental protection enterprises has increased year by year,showing the characteristics of diversification.But as environmental protection enterprises,Wanbangda keep up with the pace of national development.Through mergers and acquisitions,expanded the scope of business,from the original industrial water pollution treatment extended to energy conservation and air pollution control equipment,it seek a new profit growth point and provide comprehensive energy saving products and services to downstream customers.In this paper,by using the method of event study,analysis of financial indicators and economic value added(EVA)of the merger event,research and analysis of the merger impact on Wanbangda,whether to increase its financial performance or to improve operating results.By three methods,that can be found from the financial benefit of the short term,the market is not optimistic about this acquisition.The cumulative abnormal return is negative in the mergers and acquisitions period,reduced the wealth of shareholders.But from the long-term financial benefits,merger Haotian increased financial performance,improved business performance and expanded the profit space.So the integration effect of post merger is good,including effective integration of customer resources and promotion of management efficiency.It produced synergy.After the analysis,this paper thinks that the merger event met the company's strategic planning.It enriched the product and service type,expanded the business scope and the future development,helped stabilize fluctuations due to the performance of a single product or service,reducing the risk of the single original business.However,there is a need to further strengthen the integration,control related costs,reduce financial risks,in order to expand production and operation and further enhance the management efficiency and synergies.