Research On The Risks And Countermeasures Of Infore Environment’s Merger And Acquisition Of Zoomlion Environment

With the implementation of the New Environmental Protection Law on January 1,2015,the environmental protection industry has entered a period of pursuing high quality,and its development prospects have a strong attraction to the capital market.During the " Fourteenth Five Year Plan" period,China has made several statements on international occasions to strive to achieve the vision of carbon neutrality and carbon peaking,and to deepen the battle against pollution.In this context,more and more environmental protection enterprises are expanding their main businesses through acquisitions or mergers,achieving the extension of their own industrial chain.This paper chooses Infore Environment to merge Zoomlion Environment as a case study,and based on the identification and evaluation of the integration risks after the acquisition,combined with the resources owned by both parties,proposes countermeasures to address the integration risks of mergers and acquisitions mainly from the aspects of business collaboration,financial collaboration,management collaboration,and technology integration.Through reviewing the M&A events,the event study method is used to calculate the short-term and long-term cumulative abnormal returns of(CAR=-0.59%)and(BHAR=-11.00%),respectively.The results are not significant,which means that whether from the perspective of short-term market performance(CAR)or long-term market performance(BHAR),Infore Environment’s M&A of Zoomlion Environment is an unsuccessful M&A activity,Therefore,the focus of case analysis research is on how to effectively integrate the resources of both parties in order to achieve a synergistic effect of 1+1>2.This paper uses the theory of synergy effect,enterprise resource theory,resource arrangement theory and risk management theory to identify the risks of mergers and acquisitions integration from both macro and micro levels.The macro integration risks include:risks of national industrial policy adjustment and economic fluctuations;At the micro level,integration risks include company development strategy integration risks,financial integration risks,business integration risks,technology integration risks,and human resource integration risks;Using the Analytic Hierarchy Process to evaluate the risks of mergers and acquisitions integration,the results show that financial integration risks,technological integration risks,and national policy adjustments have a significant impact on the integration effect,followed by business integration risks and personnel integration risks,which should be given sufficient attention;Finally,there are risks associated with economic fluctuations and the integration of development strategies.In response to the reality that the merger and acquisition of Zoomlion Environment by Infore Environment did not achieve ideal results,in order to reduce the risk of integration after the merger and acquisition,this article proposes measures to address the risks of merger and acquisition integration from the aspects of business collaboration,financial collaboration,technical collaboration,and management collaboration.(1)In terms of business collaboration,mainly technical integration and business integration were carried out,including industrial chain,product regional layout,marketing strategy Integrate key customers and procurement systems;(2)In terms of financial collaboration,it mainly involves integrating financial systems,managing funds in a unified manner,reducing costs and expenses,and conducting reasonable tax planning to reduce corporate tax burden;(3)Technology integration mainly involves the integration of patented technology and technical personnel;(4)Management collaboration mainly involves integrating management systems,corporate human resources,and corporate culture.The innovation points of the paper are as follows: 1.The research perspective is relatively novel.For the study of M&A cases,most scholars focus on successful cases,focusing on M&A risks and performance.However,this article starts with an unsuccessful case of M&A to identify the main risks that affect M&A performance or the factors that lead to poor integration after M&A.Compared to successful M&A cases,M&A participants can learn from the lessons of failure;2.Taking Infore Environment ’s acquisition of Zoomlion Environment as a case study,this study delves into the factors that affect the risks of merger and acquisition integration,and evaluates the risks faced.Based on the resources owned by both parties in the merger and acquisition,countermeasures are proposed to address the risks of merger and acquisition integration,mainly from the perspectives of business collaboration,financial collaboration,management collaboration,and technology integration.