Research On Financial Risk Management Of Yingfeng Environmental M & A Zhonglian Environment

Although the extensive economic development model has led the rapid development of my country’s economy in the past few decades,it has caused indelible damage to the social and ecological environment.For this reason,how to make the social green and sustainable development become the main topic in recent years,so as to protect the environment.The industry is not only supported by various national policies,but also attracted the attention of the capital market.With the dual support of policy and capital,the environmental protection industry has ushered in a wave of mergers and acquisitions.For enterprises,although mergers and acquisitions can quickly enter the environmental protection industry,the financial risks brought by them also deserve high attention.If there is a lack of risk control measures in the process of mergers and acquisitions,it is likely to cause mergers and acquisitions to fail.In 2015,Infore Environment successfully entered the large market of environmental monitoring and solid waste treatment through the acquisition of a series of environmental protection companies,which is in the downstream of the solid waste industry.Has a large market share in the industry.At the same time,in the environmental protection industry,the target amount of this M&A activity is the largest,which is very representative in the industry.Therefore,in order to study the financial risks of mergers and acquisitions of environmental protection enterprises,this paper selects Infore Environment’s merger with Zhonglian Environment as a research case.The research idea of this paper is as follows: firstly,it sorts out the research status of domestic and foreign scholars on the financial risk of mergers and acquisitions,and introduces relevant theories;then,it expounds the background of mergers and acquisitions in the environmental protection industry,and on this basis,introduces the merger and acquisition process and motivation of this merger and acquisition activity,and then introduces the relevant theories.The F-value model is used to evaluate the financial risk of the merger.Next,starting from the merger and acquisition process,the financial risks that may exist in the merger are analyzed in detail,including the valuation risk caused by information asymmetry and valuation methods,and the Financing risk caused by financing method and structure,payment risk caused by equity dilution and cash flow,integration risk caused by integration of finance,business,technology and personnel;which measures to control,and use the financial data before and after the merger,equity status and other information to evaluate the effect of the control activities of Infore It also looks forward to the control of financial risks when other companies in the environmental protection industry conduct mergers and acquisitions in the future.