Research On Selecting M&A’s New Energy Target Firms Group Based On Synergistic Effect

Under the new economy,most domestic state-owned enterprises are facing the demand for transformation from rapid development to high-quality development.As an important means of capital expansion and resources,integration mergers and acquisition can quickly build the core competitiveness of enterprises,thereby achieving high-quality transformative growth.Mergers investment and acquisition investment are greatly different from new fixed-asset investment.The target of the former is usually an independent business unit with a mature business model and a talented team.After merger and acquisition,the original business units need to re-allocation and optimize resources with the new unit.Various decentralized resources are integrated with the merger and acquisition and produce a positive effect that exceeds the total effect of individual resources.This is the synergy effect of merger and acquisitions.Therefore,for enterprises that achieve transformative growth through mergers and acquisitions,the synergy effect should be the most significant factors during the process.Whether it is possible to improve the overall use of corporate resources through mergers and acquisitions is the key to the success of mergers and acquisitions.The choice of target is one of the most critical factors that influence the synergy effect.The existing research focused more on the causes of corporate mergers and acquisition and the selection of the single target in mergers and acquisition.While less research focuses on the consideration of mutual synergy effects of the enterprises when choosing a target.In actual mergers and acquisitions of listed companies,especially those in their transformative development,the candidate enterprises do not come alone.The construction of the industry and the core competitiveness cannot be achieved through single enterprise mergers and acquisitions.At the same time,in the process of transformative development of listed companies,to reduce the risk of single mergers and acquisition,mergers and acquisitions of industry groups are more common.It is difficult to improve the scientificalness and effectiveness of corporate mergers and acquisitions by analyzing the pros and cons of a single target.Focusing on synergy effects,this paper conducts an in-depth study on the selection of mergers and acquisitions target combination of new energy power generation companies.The evaluation and selection of mergers and acquisition portfolios are based on the optimization of the synergy between the target combination and the main body.Based on relevant theories of synergy effects,this paper builds an analysis framework of target combination selection and analyses the results of research on synergy effects at home and abroad.The mechanism and identification of synergy effects are studies,and the selection process of target companies or target combinations in the process of mergers and acquisitions is analyzed.On this basis,the in-depth research on the selection and evaluation methods of target enterprise portfolios is conducted,and an evaluation system of target enterprises portfolios synergy effects that are suitable for new energy power generation enterprises is proposed.Besides,this paper discusses the ideas and methods of selecting the best synergistic portfolios.Finally,this paper takes listed company,C,as an example,discusses the actual target choice of C to test the proposed selection model.This paper provides ideas to evaluate enterprise portfolios based on synergy effects for companies that urgently demand transformation to high-quality development.Through studying the selection of target combination,companies can have a better plan of the overall capital operation layout with a more comprehensive vision and build the core competitive advantages through mergers and acquisition.