Performance Study Of M & A On Environmental Protection Industry

With the development of information technology and the improvement of social prosperity,China's economy has entered a new normal,and its economic structure is becoming more and more perfect.The country no longer focuses on the economic growth rate,but more on high quality.In recent years,the state has issued a series of new documents on environmental protection.As a key object of assistance,the environmental protection industry has certain advantages in national policy support.Due to its particularity,the environmental protection industry is developing faster and faster,so the original enterprise scale has been unable to adapt to the actual needs,and the M & A activities in the industry are increasing rapidly.In 2018 alone,there are 87 M & A cases in the environmental protection industry,and the M & A scale is as high as 56.5 billion yuan.However,there are few literatures on the performance of M & A in environmental protection industry,and the effect of M & A is not clear.It is urgent to analyze and summarize the experience and lessons of M & A in order to facilitate the smooth development of M & A in environmental protection industry.Therefore,this paper selects the case of Yingfeng environment M & A Zhonglian environment.Based on synergy theory,market power theory and resource dependence theory,this paper analyzes the change of financial performance of Yingfeng environment M&A from horizontal and vertical directions by using traditional financial index analysis method,compares EVA before and after Yingfeng environment M&A by using EVA analysis method,and combines EVA with financial strategy matrix method Combined with the difference of growth rate,this paper analyzes the operation of Yingfeng environment before and after M &A to verify whether the synergy effect is reflected;non-financial index method is used to analyze the core competitiveness and market changes of Yingfeng environment before and after M&A.Through the above analysis,the paper reveals the effect of Yingfeng environment M&A,and obtains the Enlightenment of this M&A on the same industry.The research findings of this paper are as follows: 1.The case of Yingfeng environment M&A Zhonglian environment has improved the financial performance of the acquirer,the profitability,solvency and growth ability of the enterprise have been improved,although theoperation ability has declined,it is basically in a stable state,and it has obvious advantages in the same industry;2.The merger and acquisition has improved the EVA of Yingfeng environment,and the financial strategy matrix analysis shows that the merger and acquisition has increased the enterprise price Value is conducive to the long-term development of the enterprise;third,from the perspective of non-financial indicators,the scientific research ability,core competitiveness and market influence of the post merger Yingfeng environment have been improved,and a perfect industrial chain has been formed.Through this case study,we can draw the following inspirations for the M & A of environmental protection industry: first,when selecting the target company,the enterprises in the same industry should start from their own macro strategic layout and choose the enterprises matching their own strategic layout to realize the original intention of M & A strategy;second,in the aspect of M & A consideration payment,we should choose the appropriate way of consideration payment according to the actual situation of the acquirer;third In view of the long-term completion of the integration work after M & A,the company should look into the future and pay attention to the long-term development after M & A.It is hoped that enterprises in the same industry can learn from the above enlightenment,promote their own M & A activities,and then promote the development of environmental protection industry.