Research On Value Creation Of Yangtze Power Merger Chuanyun Company

In recent years,we have paid more attention to environmental protection and the pursuit of clean energy.According to the theory of market power,M & A is a preferred way to increase the value of power companies in order to enlarge their voice in the field of clean energy.As a well-deserved hydropower aircraft carrier,Yangtze Power has grown rapidly from its original Gezhouba Dam power plant to the present,and its growing path of mergers and acquisitions must have its merits.Based on the analysis of the case of Yangtze River Power M & A of Chuanyun company,this paper expounds the background,motivation and value creation of the M & A,this paper studies the role of the driving factors of value creation in the merger and acquisition of Yangtze River Power,and provides some valuable experience for the future development of the merger and acquisition of hydropower industry.In this paper,first of all,using literature analysis,combing many domestic and foreign scholars in the field of M & A value creation research results,and then mainly through the case study of M & A activities of case companies.In the research process,combed the case of the M & A process and M & A motivation;And choose to use the free cash flow discount method to assess whether the merger has created value for the Yangtze River Power,what are the main factors affecting the value of the enterprise,and finally how to enhance the value of the enterprise;Finally,according to the case analysis of this paper,the conclusion is extended to the entire industry,trying to provide inspiration for the industry-related M & A.It is found that the M & A makes the value of the Yangtze River electric power enterprise increase and the intrinsic value per share of the enterprise increase,the main driving factors are operating income,income tax rate and positive changes in capital structure;finally,from these three driving factors,analysis of the Yangtze River power to enhance enterprise value;summary of the success of M & A,looking at the entire hydroelectric power industry,this paper believes that in the process of enhancing the value of enterprises,the main need to do the following aspects,thus,it can be used for reference for business decision-making: attaching importance to the regional distribution of enterprise resources,putting people first to improve the management efficiency of enterprises,enriching the means of electric power marketing,focusing on the tax-saving effect and planning the financing process reasonably.The highlight of this paper is to choose one industry which is seldom involved in the past M & A research,and choose one of the leading enterprises M & A case to carry on the research and exploration of this paper,it enriches the research on value creation of merger and acquisition in hydropower industry,but the deficiency lies in the limitation of the data collection,time and the depth and level of my research on some research problems,and considering that in the past,the business of Hydropower Enterprises was relatively single,with the market competition becoming more and more intense,the operation business will gradually become more and more diversified,and the factors affecting the value creation of M& A will be more and more complex,therefore,the study of this paper is bound to have some deficiencies,in the future study and research work to continue to enrich and improve.