Research On The Performance Of Ba An Water's Overseas Merger And Acquisition Of KWI

Under the guidance of the "going global" policy,more and more companies expect to obtain advanced technology through overseas mergers and acquisitions to enhance their market competitive advantage in this industry.In the past,scholars mostly used financial indicator method,EVA and other methods to study the performance of mergers and acquisitions.The article tried to use the double difference method and the comprehensive evaluation method of entropy coefficient,and select the leading environmental protection industry company Ba'an Water as the case analysis object to study the effect of overseas mergers and acquisitions on the influence of corporate performance.During the preliminary analysis of B&B Water's acquisition of KWI,this article found that B&B Water's financial indicators have been greatly improved after the merger,but only the "single difference method" is used to compare the performance changes before and after the merger.Are there still other factors besides mergers and acquisitions that affect corporate performance? Therefore,by using the double difference method to conduct empirical research on 109 listed companies in the environmental protection industry,the research found that after removing other factors,there was still a significant positive causal relationship between overseas M&A and corporate performance.On this basis,this article conducts an in-depth analysis of the M&A case of Ba'an Water.By using the entropy coefficient comprehensive evaluation method to establish a performance evaluation system for horizontal comparison,it was found that the relative M&A performance after overseas M&A was much higher than that of the same industry;through vertical Comparative analysis found that after overseas mergers and acquisitions,the company's scale,market share,and operating conditions have all achieved significant improvements,achieving operational and financial synergy,but there is still room for improvement in operational synergy.Finally,starting from the research conclusions,this article has three enlightenments as follows: 1.Formulate long-term development strategies;2.Improve independent innovation capabilities;3.Broaden corporate financing channels.In terms of operational coordination,two suggestions as followed are put forward: First,improve asset management capabilities,including emphasis on cultural integration and strengthen the training of specialized talents;second,improve cost control capabilities.