Case Study On Performance Of Serious M&a Of Dongjiang Environmental Protection

Nowadays,with the increase of environmental protection expenditure in China,the environmental protection industry in China has been continuously optimized and developed rapidly.The industrial field has been expanded,the level of technology and service has been improved,and the driving force for China's economic development has been remarkable.There are still problems in the industry,such as small scale and low industry concentration.Environmental protection companies have used M&A to expand the business market and extend their industrial chain to accelerate the development of the environmental protection industry.Dongjiang Environmental Protection is a typical example of implementing outreach mergers and acquisitions,through its serial merger and acquisition activities,it has changed from a hazardous waste treatment leader in Guangzhou to a national hazardous waste treatment leader.This article takes Dongjiang Environmental Protection as an example and analyzes its serial M&A performance changes.After the analysis,the evaluation of its serial M&A performance is made,and the reasons for the serial M&A performance are analyzed,and the enlightenment is drawn in order to provide some reference for the same type of enterprises in the environmental protection industry to improve the company's performance through serial mergers and acquisitions.This article first introduces the situation in which environmental protection industry companies use M&A activities to increase industry concentration and promote the development and upgrading of enterprises,and explains the background and significance of this paper.After that,through reviewing the domestic and foreign related literature on the definition,motivation,performance and influencing factors of serial mergers and acquisitions,the research status of serial mergers and acquisitions is fully understood,and the research content and research methods of this paper are determined.Then,Based on the concepts and theories related to M&A performance,Dongjiang Environmental Protection was introduced.Through the analysis of its serial merger and acquisition process,the motivation of Dongjiang Environmental Protection for serial merger and acquisition was summarized.Then,using the event research method and the financial indicator method,the market performance and financial performance brought by the serial merger and acquisition activities of Dongjiang Environmental Protection were analyzed and evaluated.The results of the event research method show that more than 60%of the M&A activities of Dongjiang Environmental Protection have good market performance.By selecting relevant financial indicators to analyze the financial performance of continuous M&A activities in terms of profitability,solvency,operational capability and development capability,the results show that Dongjiang Environmental Protection has improved performance through serial M&A activities.Then,this article explores the reasons why Dongjiang Environmental Protection improves the company's performance through serial M&A activities.lt is summarized as four points:it has formulated a strategy that is in line with the company's development,selected the M&A objects,and provided innovative financing methods to provide financial guarantees and superior integration ability.Finally,conclusions and inspirations are drawn that the same type of enterprise in the environmental protection industry should formulate a development strategy according to the company's own situation.,When companies conduct serial M&A activities,the M&A objects should be selected,and the financing channels should be expanded to provide financial guarantees,and finally the post-integration of M&A should be strengthened.