Research On The Performance Of Continuous Mergers And Acquisitions Of Environmental Protection Enterprises

With the transformation of Chinese market economy development mode,China urgently needs to expand the market scale through business transformation and industrial upgrading.M&A and reorganization is one of the main ways to expand the market scale.On the one hand,through mergers and acquisitions,companies can achieve industrial integration more quickly and rapidly increase market share.On the other hand,in recent years,there have been more and more cases of mergers and acquisitions disclosed on the Internet,and companies have adopted mergers and acquisitions.Whether the restructuring really creates value for the enterprise is still worth discussing.As an emerging industry,the environmental protection industry has received the attention of the country.Although the development of China's environmental protection industry is in the early stage of development,its development speed is very fast,and the state's investment in environmental pollution control is also fluctuating.The overseas M&A of the environmental protection industry are characterized by the development of the market and the introduction of technology.The M&A companies of environmental protection enterprises are mainly non-state-owned enterprises,and the phenomenon of continuous mergers and acquisitions is obvious.The Tianxiang environment was selected as the research object,and the six companies acquired from 2014 to 2016 were analyzed.The merger process of Tianxiang environment was analyzed.The motivation of M&A was mainly due to the support of national policies and the support for PPP project in Sichuan Province.While,choosing mergers and acquisitions is also good for avoiding trade barriers.In addition,mergers and acquisitions can achieve economies of scale and synergies.Analyze the performance of continuous mergers and acquisitions,and use event analysis method to evaluate short-term performance.According to the calculation results,it is found that the short-term mergers and acquisitions bring positive benefits to the enterprises,but the positive effect is not good,and the shareholding ratio of M&A is M&A performance.Have a positive impact.Using the financial indicator method to analyze the long-term performance of the company,it is found that the short-term solvency improvement is obvious,the long-term solvency is not good,the operating capacity and profitability are not ideal,but the growth rate of operating income is very fast,and the increase of net profit bigger.In addition,Longhua Technology was selected as the benchmarking enterprise,and it was found that Tianxiang Environment's continuous overseas mergers and acquisitions were better than Longhua Technology.The non-financial indicator method is used to comprehensively analyze the performance,and the performance evaluation is carried out from the perspective of technology,brand,relationship,knowledge assets acquired by M&A.Performance is evaluated from the perspective of scientific research and innovation.The six acquisitions of Tianxiang Environment are not a simple summary of individual mergers and acquisitions,but the continuous merger and acquisition as the company's development model and development strategy.The Tianxiang environment is constantly developing in continuous mergers and acquisitions.The company has developed rapidly under this strategy by relying on its own strong resource integration capabilities to continuously improve its growth capabilities.Therefore,the study of such a company provides a certain reference for the merger of other environmental protection companies.