Study On The Performance Inpact Of ZFH’s Technology Acquisition Of Shenlian Environmental Protection

Innovation is the main driving force of national economic growth,and the Fifth Plenary Session of the 18 th Central Committee of the People’s Republic of China proposed that "adhering to innovative development must place innovation at the core of the overall national development".Private enterprises occupy a major position in the national science and technology innovation,along with the development of the economy,many private enterprises have problems such as backward technology level and insufficient research and innovation capacity.At the same time,technology M&A is a new and effective way for enterprises to acquire external technology,which can promote the company’s technological innovation capability and gradually become a major form of enterprise M&A in recent years.However,there are risks involved in technology M&A,and the failure of technology M&A not only wastes the existing resources of enterprises and restricts their development,but also may bring serious losses to the national economy,and therefore technology M&A is widely questioned.Since not many enterprises can achieve the expected results after technology M&A,it is urgent to solve the problem of how to improve the success rate of technology M&A in private enterprises in China and make them achieve the expected results.This thesis selects ZFH’s technical M&A of Shenlian Environmental Protection as the research object to study its M&A motivation and M&A performance,in order to help the future transformation and upgrading of private enterprises.Firstly,the literature and theories on technology M&A are sorted out,and a theoretical framework with the motivation of technology M&A and M&A performance as the main body of research is constructed.Secondly,we introduce the basic situation of ZFH and its target company,sort out the transaction scheme of ZFH’s technology M&A,and analyze the motivation of ZFH’s technology M&A with the theory.Again,this thesis analyzes the market performance of ZFH’s technology M&A through the event study method and analyzes the long-term financial performance through relevant financial indicators.Finally,the overall efficiency changes derived from the construction of the performance evaluation model are analyzed with the effectiveness of the performance changes before and after the ZFH M&A.The study shows that,firstly,the motives of ZFH’s technology M&A are multifaceted,mainly including acquiring leading technologies,achieving synergies,breaking barriers to entry,and improving profitability;Secondly,from the perspective of market performance,the market response after ZFH’s technology M&A is good.Third,from the perspective of financial performance and innovation performance,ZFH’s technology M&A has improved the company’s profitability,growth and operational capacity;thirdly,ZFH’s technology M&A has obviously improved the company’s profitability,growth and operational capacity,but the impact on solvency is weak,the Overall financial performance is positive,and innovation performance is optimized through technology M&A.Fourth,by analyzing the effectiveness of efficiency changes on the changes in corporate performance before and after the M&A event,it is concluded that the changes in corporate performance are caused by M&A.Based on the findings of the study,this thesis puts forward relevant suggestions on the selection of the target company and the integration of technical and other nontechnical resources after the M&A for the technology M&A of private enterprises in China,in order to provide some help to the transformation and upgrading of Chinese enterprises.