A Research On The Motivation And Performance For Infore Environment’s Acquisition Of Zhonglian Environment

As our country’s policy requirements for urban and township environmental sanitation continue to escalate,the environmental sanitation market demand continues to grow,and the structure is constantly optimized.Different kinds of capitals have entered the market and M&A events occur frequently.The sanitation industry has ushered in a new development opportunity.Based on this background,the thesis selects the largest and most far-reaching M&A case,Infore Environment’s acquisition of Zhonglian Environment,in the sanitation industry in recent years,studies its motivations and performance,and makes an overall evaluation of it.In terms of motivations for mergers and acquisitions,the thesis first analyzed the demand and competition in the environmental sanitation industry,and found that the sanitation market has a broad prospect and relatively low market concentration.Secondly,it analyzed the basic situation,corporate strategy,advantages and disadvantages of Infore Environment and Zoomlion Environment.Through analysis,it is found that Zoomlion Environment can better fit the development strategy of Infore Environment and make up for the disadvantages of profitability.Based on the analysis about the industry and the company,the thesis concludes that Infore Environmental’s motives for its acquisition of Zoomlion Environment include seizing the outlets of the sanitation industry,improving the layout of the solid waste industry chain,optimizing financial performance and increasing corporate market value.In terms of M&A performance,the thesis selects event research method,financial indicator method,DEA method and non-financial indicators to evaluate M&A performance.The analysis result of the event research method shows that stock investors are not optimistic about the merger event in the short term.The analysis result of the financial indicator method shows that the merger event has improved the overall financial performance of the company,especially in terms of profitability.The analysis result of the DEA method shows that the overall efficiency of the enterprise after M&A has been improved compared with that before M&A,and the analysis results of non-financial indicators show that the event has increased the market share of enterprises’ new businesses.Therefore,Infore Environment’s acquisition of Zoomlion Environment has achieved good performance overall.The M&A event also brought some enlightenment.For example,the selection of M&A targets that meet the company’s current strategic needs will be beneficial to the company’s long-term development.After the merger,attention should be paid to the company’s risk identification to achieve high-quality development.And research on M&A performance should pay attention to the diversity of evaluation methods and dimensions.