Coal M&A Research Based On Cost-Benefit Perspective

Coal is our most important primary energy, accounted for70%in both energy production and consumption structure. With the rapid economic growth of industrialized society, the global demand for coal resources are increasing rapidly, and thus coal has an important impact on people’s lives. China has low coal industry concentration and weak competitiveness in the market, and this development model is no longer suitable for the growth of market economy, therefore, M&A is a effective measure to gradually optimize enterprise development path. On one hand, it can improve the coal industry concentration degrees, lower accident rates, on the other hand it can reduce the cost of coal enterprises and increase revenue. Therefore, the research of coal enterprises M&A from the perspective of cost-benefit has important theoretical and practical significance.Based on M&A theory and related revenue theory, according to the characteristics of the coal enterprises M&A, the paper takes Shanxi Coking Coal Group, Datong Coal Mine Group, Yangquan Coal Group, Lu’an Group, Jincheng Anthracite Mining Group for examples, analyzes the cost of coal enterprises M&A, tide the coal enterprises report information, and puts forward to the measurement methods of coal enterprises costs M&A. At the same time, based on coal M&A revenue evaluation principle, the paper establishes evaluation index system, including the five aspects of the economy、society、resources、security and technology. Then using entropy method and timing multiple indicator dynamic comprehensive evaluation method, it draws the evaluation value of post-merger and the fifth consecutive year of comprehensive evaluation value of five coal enterprises, and finally makes enterprise efficiency analysis based on the cost-benefit analysis model. The conclusion is that Lu’an Group has highest efficiency studies, the M&A revenue ranking of Shanxi Coking Coal and Datong Coal Mine Group is higher than before,Yangquan Coal Group and Jincheng Anthracite Mining Group evaluation value is less than before, which primarily related to corporate personnel constitute, investment in safety, integration of awareness, the ability to integrate enterprise internal control related to the management system. The paper also draws that the input of merger integration costs don’t have direct impact on the cost-benefit efficiency. Finally, this paper analyzes the conclusion with the specific situation, and proposes countermeasures and suggestions to promote the efficiency of coal enterprises M&A costs and benefits from the macro and micro aspects.The creative perspectives of the paper:(1) The paper defines the main components of the cost of the coal enterprises M&A, costs of measurement methods in accordance with the relevant report data, and introduce coal enterprises M&A costs into the M&A empirical study to supplement the cost of coal enterprises M&A empirical research blank.(2) The paper applies the timing multi-index comprehensive evaluation method, introduces the concept of a matrix of time, uses the ideal point method to calculate the dynamic evaluation value of the coal M&A revenue. It overcomes the defect of static evaluation, provides a more comprehensive and accurate evaluation and the information for the coal enterprises and some stakeholders on coal M&A objective evaluation.