Study On The Motivation And Performance Of M & A Of Environmental Protection Enterprises

China’s environmental protection industry emerged relatively late following series of problems——immature markets small overall scales and poor industry concentrations——which to large degree depends on the support and promotion from the government.In recent years,with the rapid development of China’s economy and increasing social focus on environmental protection,the state and government at all levels have been paying much attention to some environmental protection enterprises.Meanwhile,the investment in this field has been constantly added,which attracts a large number of enterprises pushing into the market through acquisition even merge and reorganization to hunt for new profit.Among them,the most conspicuous is the case—— "snake swallowing elephant" in 2017——China Tianying’s acquisition of Jiangsu Dezhan that is the most notable.Through the study of the merger case,this paper aims to bring some reference for future mergers and acquisitions of environmental protection enterprises.Based on the study of a large number of literature,this article first sorts out the motivation and the analytical methods of the performance of domestic and international consolidation,then it elaborates the relevant theoretical methods involved.Moreover,it analyzes the status quo of China’s mergers and acquisitions as well as the development of environmental protection enterprises.In addition,it introduces the basic situation of China Tianying and Jiangsu Dezhan as well as the mode and process of merger and acquisition.Combined with the actual situation of the enterprise,this article also addresses the motivation of the merger from the perspective of the buyer.Meanwhile,the performance of China Tianying’s acquiring Jiangsu Dezhan is analyzed,and event study is applied on m&a market reaction;the method of financial indicators has to do with all the analysis concerning the ability of profit-making,of debt-paying,of operating and and of developing;the method of non-financial indicators is for market share analysis,research and development capabilities and international influence.On the whole,China Tianying is a huge success,which has brought a positive impact on the long-term development of the enterprise.Finally,this paper puts forward to several suggestions to China Tianying,it is high time to enhance its own financing ability,increase the investment in research and development,and accelerate the integration of resources so as to improve the performance of enterprise merger and acquisition.At the same time,it also offers some experience and inspirations for the future development of the similar enterprises.First,seeking for proper time to make decisions seems significant;The second is to choose the merger object carefully;Third,to choose the right payment method;Fourth,to strengthen the integration of resources after mergers and acquisitions.The acquisition has successfully created value for investors in China Tianying hoping to provide useful insights for future mergers and acquisitions in the environmental industry.