Research On The Evaluation Of T Company’s Sustainability Under High Leverage Merger And Acquisition

Lithium resource is known as the " white oil" of the 21st century,whether to master lithium resource is related to the success or failure of our new energy strategy to some extent.Upstream lithium enterprises often use aggressive high-leverage mergers and acquisitions to acquire high-quality overseas resources.However,the huge merger and acquisition costs,coupled with the sharp fluctuation of lithium price,bring strategic,operational and financial risks to the enterprise,and pose a serious threat to the enterprise’s sustainable operation ability.Therefore,it is of great significance to explore the impact of high leverage M&A on the company’s sustainable operation and seek ways to improve its sustainable operation.This paper takes T Company as the case study object.Firstly,through literature analysis,it sorts out the relevant theoretical researches on sustainability at home and abroad.Secondly,this paper introduces the high leverage M&A case by case analysis,and puts forward the influence of high leverage M&A on the company’s sustainable operation ability.On this basis,the paper analyzes T company’s sustainable operation ability under the high leverage merger and acquisition from the macro level,the industry level and the company level.The results show that:(1)In terms of macro factors,the decline of the macroeconomic climate index,the reduction of government subsidies,and the change of the bank loan benchmark interest rate all have a negative impact on the M&A strategy of the company;(2)In terms of industry influencing factors,the decline of lithium price and the intensification of inter-industry competition have adverse effects on the company’s sustainable operation ability;(3)In terms of internal factors,the external environment,corporate resources and capabilities do not match with its merger and acquisition strategy,leading to strategic risks;The production growth rate of the company decreases year by year,the research and development efforts are insufficient and the market share declines,which to a certain extent leads to business risks;The company’s equity concentration and internal control system is not sound,resulting in the company’s internal management risk;The company’s profitability,business,debt paying,development ability and financial flexibility are insufficient,resulting in serious financial risks.(4)Through factor analysis,the sustainable operation ability of T Company after the merger is evaluated,and the influence degree of each factor is determined according to the proportion of each factor to the sustainable operation ability.On this basis,this paper puts forward the path selection of enterprise sustainable management ability.At the strategic level,the company’s development strategy should be adjusted according to the internal and external environment.At the management level,the company should continue to consolidate the upstream lithium resource layout,steadily implement the company’s lithium product expansion plan,strengthen the research and development capacity,and establish a variety of strategic cooperative relations with upstream and downstream enterprises;In internal management,optimize the corporate governance system and improve the internal control system;In terms of finance,the company’s capital structure is optimized through multi-channel financing.