Research On Financial Risk And Prevention Of Green Merger And Acquisition Of Heavy Pollution Enterprises

With the gradual deepening of the concept of green development,the environmental protection industry,as a key national support industry,has been attached importance by all walks of life.The industry market continues to expand,and the industry has broad prospects for development.Under increasingly stringent environmental regulations,most heavily polluting enterprises choose green M&A to obtain green resources,reduce pollution costs,avoid forced shutdown,and quickly realize the purpose of enterprise transformation.However,whether the green M&A of enterprises is successful or not,a large number of research data show that the success rate of M&A is actually not high.The financial risk in the process of merger and acquisition is an important reason for the failure of merger and acquisition.Only by clearly recognizing the sources and causes of the financial risks of merger and acquisition,and matching appropriate preventive measures to reduce or even avoid the financial risks of green merger and acquisition,can the heavily polluting enterprises effectively improve the success probability of green merger and acquisition and realize the reasonable allocation of resources.This paper takes the Green Merger and Acquisition of Jinyuan Shares from 2015 to2021 as the research object,and on the basis of referring to the existing domestic and foreign literatures,expounds the definition,M&A motivation,the source,causes and control measures of financial risks in M&A,which lays a theoretical foundation for the subsequent case analysis,and then analyzes the situation of green M&A in China,and analyzes the financial risks and their causes in the process of green M&A of Jinyuan Co.,In the process of M&A,it is identified that there are some problems,such as improper selection of valuation methods,inflated future cash flow,deteriorating cash liquidity,short-term debt repayment ability,small profit space for green business,reduced profitability of enterprises,heavy burden of business integration,easy loss of technical personnel,neglect of external risk factors,and weak ability of enterprises to resist risks.Through atman Z-value analysis,it is concluded that enterprises are in a gray area and will fall into a critical state of bankruptcy if they are not careful.Finally,on the basis of identifying the above problems,the corresponding preventive measures are put forward,and it is suggested that Jinyuan Co.,Ltd.carefully choose a reasonable evaluation method to make the valuation closer to the actual value of the enterprise and reduce the excessive merger cost payment;Adopt flexible financing payment method to reduce the risk of corporate risk of debt and cash flow break;Steadily improve the profitability of enterprises,optimize internal costs,and improve the profitability of enterprises;Formulate and improve the integration strategy,monitor the integration process in real time,and rationally allocate resources.In addition,a financial risk early warning system should be established to make green M&A activities achieve synergy to a greater extent.At present,the existing literature on green M&A is mainly based on empirical research,and no scholars have conducted research from the perspective of financial risks and prevention of green M&A.This paper takes Jinyuan Co.,a heavily polluting cement enterprise,as the research object,and studies the risks existing in its green M&A process and the corresponding prevention and control measures,which is beneficial to enriching the relevant theoretical basis of green M&A and also has certain reference value for green M&A of heavily polluting enterprises.