Research On Environmental Protection Enterprise M&A

The environmental protection industry is a typical policy-oriented industry.With the country’s recent policy tilt and increased capital investment in the environmental protection industry,the society’s attention to environmental protection issues has continued to increase,and the capital market has begun to focus on investment in the environmental protection industry.As a result,various environmental protection companies have sprung up,gradually growing their business through acquisitions or mergers and acquisitions and creating a comprehensive environmental protection integrated platform for the entire industry.One of the most notable mergers and acquisitions belongs to the environmental protection merger and acquisition case that occurred in 2018-Yingfeng Environmental M&A Zhonglian Environment.This article,through the introduction of this merger and acquisition case,hopes to bring important reference significance to the increasingly frequent environmental protection mergers and acquisitions case in the future.Based on the study of a large number of related literatures,this article first analyzes the current situation of China’s environmental protection industry development and corporate mergers and acquisitions,and then introduces the background of Yingfeng Environment’s merger and acquisition of Zhonglian Environment,the development process of both parties and the merger and acquisition process.Based on the development of the environmental protection industry,from the perspective of both parties in the merger and acquisition,the motivations of Yingfeng Environment’s merger and acquisition of Zhonglian Environment were analyzed separately.Then from the perspective of the environmental protection industry’s industrial chain,the analysis of Yingfeng Environment’s acquisition of Zhonglian Environment choice of methods and identification and prevention of merger and acquisition risks.Then analyze the short-term market effect and financial performance after Yingfeng Environment acquired Zhonglian Environment,and use the event research method and financial analysis method to analyze the acquirer’s market response,profitability,debt repayment ability,operating ability,and growth ability.Analysis found that the market reactednegatively in the short term.However,from the perspective of long-term development,it is a relatively successful merger and acquisition choice.This merger and acquisition has brought positive and positive impact on the company’s long-term development.Finally,this article starts from the effect of mergers and acquisitions and obtains the main conclusions in this merger and acquisition case.First,strengthening corporate financing capabilities and ensuring a reasonable financing structure,and controlling financial risks within a reasonable range are the keys to ensuring successful corporate mergers and acquisitions.Second,whether the target company conforms to the direction of the company’s future development strategy will affect the operating performance of the company after the merger and acquisition,and the matching target company will help the company’s long-term development.Third,the completion of mergers and acquisitions must pay attention to strengthening the company’s cash flow management and goodwill.Only by paying attention to and strengthening the management of the company’s cash flow and goodwill before and after the merger and acquisition will there be a good market response and the company’s continued operations in the future.