Research On The Overseas Financial Risk Of Environmental Protection Enterprises In China

With the improvement of people’s lives,environmental issues have become more prominent,and the country has also attached increasing importance to environmental protection issues and supplemented with policy support.Under the implementation of the One Belt One Road policy,environmental protection companies actively participate in overseas and want to acquire key technologies such as foreign advanced technologies and brand effects through overseas mergers and acquisitions to enhance their competitiveness and seize domestic and international environmental protection markets.However,overseas mergers and acquisitions by Chinese environmental protection companies are still at an initial stage.Compared with other companies,the failure rate of mergers and acquisitions will be higher.In order to increase the success rate of mergers and acquisitions,the research on environmental risks of overseas mergers and acquisitions by environmental protection companies is imminent.This article through the selection of GuoZhen Environmental Protection’s acquisition of McWong as a case study,analysis of various financial indicators before and after GuoZhen environmental protection mergers and acquisitions,and assisting the Z value model to do a quantitative comprehensive analysis of its overall financial risk;The acquisition of McWong performed financial risk analysis in stages in the order of mergers and acquisitions.Based on this,the thoughts and conclusions put forward some financial risk prevention measures that can refer for China’s overseas mergers and acquisitions of environmental protection companies.And draw the following conclusions:(1)The overseas mergers and acquisitions made by China’s environmental protection companies are driven by China’s current national conditions,and "going out" will gradually become normal.(2)The characteristics of overseas mergers and acquisitions of environmental protection companies in China determine the financial risks that may arise from their mergers and acquisitions.For example,high pricing risk and high financing risk caused by the difference in technology level and scale between M&A parties.(3)China’s environmental protection companies are faced with the high-risk economic activities of overseas mergers and acquisitions and need to be cautious.A comprehensive and systematic risk prevention system should be established and implemented as soon as possible so as to effectively cope with possible financial risks in overseas mergers and acquisitions.