The Research Of Merge And Acquisition On Small And Medium Water Service Companies

The system reform of water service company (WSC) influents the social welfares and economic development directly and profoundly. Along with the opening of public utilities to the social capitals and the taking-effect of new water-price policy characterized by assuring the return of investment (ROI), the water industry comes to be the new hot zone for the investments. With the M&A behaviors of small and medium WSCs by the social capital as the study object, the paper tries to summarize and analysis the key factors of M&A in the preparation-operation-integration stages in a case study.The dissertation is divided into 5 parts. The first part is the prolegomenon, in which the background, significance and the problems in current research are discussed as well as the basic researching framework. The second part is the literature review, in which the theories of M&A are reviewed and summed up, the decision-making procedure and the most important problem in the M&A of WSC-"evaluation"are talked about. The third part of the dissertation described the current status of the Water Service industry. The fourth part chose a certain WSC in Chongqing to implement the M&A case analysis. The fifth part is the conclusion part of the dissertation.The main results of the study are as follows: The innovation in regulative policies will accelerate the M&A behaviors of small and medium WSCs, and among them, the integrative M&A are the most propel modes to satisfied the needs of government and WSCs; the integrative evaluation method cam be used in the filtration of the potential target WSCs; the free cash follow can be used to evaluate the company value before the water price is adjusted to the prescribed net ROA; the cultural factors, market factors, the preparation and the implementation should be concerned in the practices of M&A about small and medium water service companies.