Research On Synergy Effect Of Horizontal M&A Of Infore-enviro Company

As a green industry enjoying many policy dividends in recent years,a new round of development opportunities for the environmental protection industry is coming,while enterprises engaged in related business in the environmental protection industry are facing both opportunities and challenges at the moment.How to strengthen one's own strength in the development trend of the industry and strive to be in the forefront of the industry is a problem faced by every environmental protection enterprise.Faced with increasingly powerful competitors in the industry and more and more "invaders" across industries,horizontal merger and acquisition,as an important way of enterprise expansion,is an effective way for environmental protection enterprises to obtain more advantageous resources,improve their operating efficiency and further strengthen their comprehensive strength.After horizontal merger and acquisition,whether the enterprise can produce synergy not only determines whether the merger and acquisition transaction is successful,but also greatly affects whether the enterprise can obtain higher economic benefits.Therefore,how to carry out horizontal mergers and acquisitions and how to achieve synergy after mergers and acquisitions have become an issue of concern to environmental protection enterprises.Taking Infore-Enviro Company's horizontal merger with Zoomlion-Enviro Company,a typical case in the environmental protection industry in recent years,as the research object,this paper uses the methods of literature research and case study,starting from the merger process of the two companies,combining with the relevant theories of the synergy effect of the horizontal merger,and referring to the financial annual reports and market public data of the merging party and the merged party in recent years,deconstructs the causes of the horizontal merger behavior of both parties.This paper also expounds the positive and negative performance of the merging parties in terms of synergy effect,and then analyzes and evaluates the synergy effect of Infore-Enviro Company after the merger from three aspects of management,operation and finance respectively,using a series of financial and a small amount of non-financial specific indicators.After research,it is found that Infore-Enviro Company's horizontal merger and acquisition is relatively successful.It has produced certain synergy effects in management,operation and finance.However,there are still certain risks and problems.If greater synergy effects are produced and the operating efficiency of the enterprise is improved,further corresponding measures need to be taken.The conclusion drawn from the case study provides some reference opinions for other environmental protection enterprises to carry out horizontal mergers and acquisitions.