Environmental Protection Enterprises Merger And Acquisition Research On Motivation And Performance

With the continuous development of country’s economic market,if an enterprise only relies on its own connotative development,its development speed can no longer meet the expanding market demand.Chinese enterprises have begun to pursue extensional development and speed up the development of enterprises through external help.In this context,M&A activities are gradually becoming known to the general public.The economies of scale and synergies generated by the M&A of other enterprises can produce the effect of "1+1>2" for the enterprises,and obtain additional benefits beyond the separate development of two enterprises.Compared with other industries,the environmental protection industry is an emerging industry that my country began to vigorously support its development after 2005.The industry started late but developed rapidly.If you want to gain a place in the highly competitive protection market and occupy the position of a leading enterprise,the best way is through mergers and acquisitions of other companies.This paper selects the largest M&A event in country’s ecological protection and environmental governance,the emerging industry,as of 2018,the merger of Infore Environment and Zoonlion Environment as the case of this article.Starting from the respective motivations of the two parties in the M&A,combined with the information announced in the entire M&A process,at the same time,it analyzes the performancerelated trends and causes and consequences of the entire M&A process.There are five chapters in this paper,which are described as follows.The first and second chapters describe the current macro background of the protection industry and the theoretical and practical significance of this case,as well as the relevant theoretical knowledge used in this article.The third chapter,on the one hand,briefly describes the enterprise status of both parties in the M&A and the transaction methods and equity transfer methods selected by each transaction party in the M&A for the development of the enterprise after the merger.On the other hand,it conducts a multi-faceted analysis on the motives of the two major environmental companies to promote mergers and acquisitions.The fourth chapter,selects traditional financial indicators,economic valueadded analysis and non-financial enterprise indicators to analyze the post-merger performance carefully.The last chapter is the fifth chapter.On the one hand,this chapter summarizes the motivation and performance of the previous article,and puts forward suggestions on Infore’s environmental M&A activities.