Analysis On The Motivation And Performance Of Continuous Mergers And Acquisitions In Grandblue Environment

In recent years,mergers and acquisitions have become one of the important options for my country’s large and medium-sized enterprises in the development process.As far as the environmental protection industry is concerned,one of the main motivations for enterprises to conduct M&A is to obtain advantageous resources and improve economic benefits.M&A can promote the extension of industrial chain,expand the scale of enterprises,and help enterprises to carry out comprehensive development.At the same time,it is also conducive to promoting the all-round development of the environmental protection industry,providing a good environment for more environmental protection enterprises,and further promoting environmental protection enterprises to complete the horizontal and vertical M&A activities.At present,the domestic environmental protection industry is experiencing increasingly fierce competition.More and more environmental protection companies have begun to use M&A to accelerate the expansion of business sectors and improve the industrial chain,in order to create a diversified comprehensive platform.This article selects the case of Grandblue Environment’s continuous mergers and acquisitions.First,on the basis of a large amount of relevant literature and materials,introduces the basic overview and development background of Grandblue Environment through the literature research method,and elaborates the purpose and results of Grandblue Environment’s continuous mergers and acquisitions process.Further summarize the specific motivations of Grandblue Environmental Company’s continuous mergers and acquisitions.Then,analyze the company’s performance under continuous mergers and acquisitions from three aspects.(1)In terms of social performance,the study found that the company’s social responsibility has been continuously strengthened,effectively driving the regional economy and population employment rate.(2)In terms of long-term financial performance,combined with the financial indicator method,it is found that in terms of the company’s debt solvency,continuous mergers and acquisitions have accumulated a high debt-to-asset ratio,and short-term debt solvency is also weak.However,the company’s profitability is still relatively low compared to the industry.In a superior position and operational capability,the company has obvious competitive advantages in its solid waste business.On the whole,it has high operational qualifications and development capabilities.The current business is still in the growth stage.The company’s scale has experienced rapid growth in 2014.It has slowed down,but scale expansion continues.(3)In terms of short-term market performance,the event research method is adopted to analyze the short-term performance of company mergers and acquisitions based on changes in accumulated excess returns,and it is found that in most cases,the market shows positive signals for company mergers and acquisitions.Finally,the enlightenment of the case is obtained through the above analysis,and the research is summarized.While analyzing the continuous mergers and acquisitions behavior of Grandblue Environment in the past,we should also look to the future and pay attention to the long-term sustainable development of the company after the merger.It is hoped that the research in this article can provide suggestions and enlightenments that can be used for reference in the research of related types of problems.