Research On Motivation And Performance Of Continuous Cross-industry M&A Of Yingfeng Environment

The current development of China's traditional industries has problems such as overcapacity,high costs,and weakened competitiveness.At the same time,as China's digital economy continues to expand,traditional industries will face greater difficulties and challenges.More and more traditional industry companies Expect industry transformation.After the subprime mortgage crisis,there has been more and more mergers and acquisitions among enterprises.Continuous mergers and cross-industry mergers,acquisitions have become a new trend in domestic M&A.With the country's emphasis on the environmental protection field,the environmental protection industry has increasingly developed into a gold industry.More and more traditional industry companies hope to transform into the environmental protection industry.However,due to the different operating modes and management mechanisms of each industry,cross-industry mergers and acquisitions have a greater risk of failure,and continuous M&A further increase the risk of corporate mergers and acquisitions.The question of how continuous cross-industry M&A can bring positive impacts to enterprises deserves attention.Based on this background,this paper chooses Yingfeng environment as the case study object to study the theme of cross-industry continuous M&A.Yingfeng Environment successfully changed from the equipment manufacturing industry to the environmental protection industry through cross-industry M&A of 6 environmental protection industry enterprises,which is typical.Through combing the cross-industry continuous M&A in Yingfeng environment and combining the development of the industry before and after the company's M&A,this paper analyzes the motives of mergers and acquisitions and the performance of mergers and acquisitions in Yingfeng environment,and obtains corresponding enlightenment.First of all,this paper thinks that the motivation of Yingfeng environment's cross-industry continuous mergers and acquisitions mainly includes the following four points: reducing industry barriers and completing industry transformation;Raise awareness and improve competitiveness;Pursuing synergy effect of M&A;Perfect the industrial chain layout and realize strategic planning.Secondly,the financial performance of this cross-industry continuous M&A is analyzed from five aspects of profitability,solvency,operational capability,growth capability and cash flow status.The analysis shows that after the series of M&A,the profitability,operational capability and cash flow of Yingfeng environment have improved to different degrees on average,but this continuous M&A has not brought positive impact on the short-term solvency and growth capability of the company.Then,from the market level,research and development and technical level,employee level,the non-financial performance evaluation of Yingfeng Environment's continuous M&A is conducted.The research finds that through this series of M&A,Yingfeng Environment's market share and employee scale are continuously expanding,and its research and development technology level is continuously improving.Based on the analysis of the motivation and performance of the continuous cross-industry M&A of yingfeng environment,it can be found that the performance of the continuous cross-industry M&A of yingfeng environment has achieved positive results,but there are also some problems.In view of this case,it is concluded that continuous cross-industry mergers and acquisitions should be carried out around the company's strategy,should pay attention to the synergistic effect,should guard against the risk of goodwill impairment,should strengthen the management of enterprise cash flow.meanwhile,from the perspective of the industry,some Suggestions are put forward for some enterprises that want to carry out cross-industry continuous mergers and acquisitions in the future.