The Case Analysis On The Merger And Acquisition Of Urbaser By China Tianying

As the first of the seven strategic emerging industries in China,the industry of environmental protection is expected to enter the prosperous road of prosperity under the continuous promotion of domestic policies and social needs.During the "14th FiveYear Plan" period,the government will guide the environmental protection industry to deepen its technological fields and return from multiple perspectives.The nature of service,which will drive the environmental protection industry structure to continue to be adjusted to the direction of marketization,and environmental protection companies will usher in a greater investment trend and new development pattern.In recent years,with the rapid development of China economy and the continuous advancement of urbanization,the relatively lagging solid waste management industry has not yet been able to meet market demand.In the future,China’s solid waste management industry will continue to grow,with the entire industry chain in this field.The demand of the industry has led companies in the industry to choose to seek development through mergers and acquisitions.At present,the number of domestic researches on M&A of the environmental protection industry is relatively small,and the research direction is mostly limited to the analysis of the industry as a whole.The research on a single typical case is relatively scarce.Under the background of the market reform of the industry of environmental protection,the success of domestic environmental protection companies The study of M&A cases should be taken seriously.Therefore,as a domestic listed company in the environmental protection industry that has been operating in the downstream of the solid waste management industry chain for many years,China Tianying’s successful experience in the case of Urbaser,a European solid waste giant and the world’s sixth-ranked environmental company Companies in the same industry can provide a good reference for breaking through the development status quo.Based on the literature research method,case research method and comparative analysis method,starting from the strategic analysis and motivation explanation of China Tianying’s M&A case,this paper will study and further discuss the company’s performance affected by the M&A event,and finally conclude based on the inferences obtained from the case analysis Propose recommendations with a certain universal reference value.This article first sorts out the literature related to the motivation and evaluation theory of M&A,and sorts out the research methods that are suitable for this case;then applies the case study method,taking the case of China Tianying’s M&A of Urbaser as the research object,starting from the background of the merger case,and introducing financing strategy and consideration payment method in M&A,targeted analysis of the company’s merger strategy and merger motivation;combined financial indicators and non-financial indicators,and supplemented by the EVA indicator system to compare and analyze the company’s performance before and after the merger.Judging that China Tianying’s acquisition of Urbaser has successfully improved the company’s performance.Through the research on the case of China Tianying’s M&A of Urbaser,this paper finds that China Tianying’s design of a reasonable and practical multi-layer transaction structure during the merger process greatly alleviates the problem of payment of consideration that is easy to occur in "snake swallow elephant" M&A.The synergy of M&A has been significantly improved without significant debt repayment pressure.Generally speaking,the implementation of the merger has slowed down China Tianying’s profitability in the short term,but judging from other financial data,the long-term impact of the merger on the company is positive.In response to the above conclusions,this article puts forward recommendations from the three stages before,and after the merger: the selection of the target of the merger must integrate various factors,the financing strategy and payment methods must be formulated according to the actual situation of the company in the implementation stage of the merger,and the post-merger Integration of resources for better synergy.