Study On Synergistic Effect Of M&A Of Environmental Protection Enterprises

Through mergers and acquisitions,some listed companies can reallocate resources,optimize resources and promote better and faster development of enterprises.Not only listed companies,enterprise M&A activities can bring many benefits to enterprises,such as expanding the scale of enterprises,forming scale effects,sharing various resources,improving the operating efficiency of enterprises,improving the market share of enterprises through M&A,forming economies of scale,and improving enterprise performance and competitiveness.Listed enterprises gain the integration effect through mergers and acquisitions and realize the advantageous resources of mergers and acquisitions and non-mergers and acquisitions.Compared with foreign countries,the development of environmental protection enterprises in China is slower.At the same time,the environmental protection industry started late and is still in the growth stage.China’s environmental protection industry has the characteristics of decentralization and small scale,so many environmental protection enterprises want to achieve leapfrog development through mergers and acquisitions.An unconventional way for environmental protection enterprises to achieve larger scale and better benefits is mergers and acquisitions,which can combine the advantages of both sides,reduce disadvantages and maximize synergy.Therefore,studying the synergy effect of mergers and acquisitions in specific cases will help listed companies to better realize the enterprise’s growth and strength through mergers and acquisitions.In addition,it also provides experience support for companies of the same type to carry out mergers and acquisitions,how to manage companies more effectively through mergers and acquisitions,serve the company’s long-term objectives,and improve the company’s performance.Therefore,studying the motivation and synergy of M&A will help listed companies better understand and apply M&A,so as to provide reference for companies of the same type whether to carry out M&A and how to effectively use this kind of capital operation to serve corporate strategy and improve performance.This paper uses case study method and comparative analysis method to study the M&A behavior of CECEP QUIPMENT from 2015 to 2020,analyzes in detail the process and motivation of CECEP QUIPMENT M&A of ZHAOSHENG ENVIRONMENTAI,and analyzes in depth the synergy effect of the M&A to CECEP QUIPMENT according to the above conditions.To analyze the synergy effect,firstly,the event study method and EVA model are used to analyze whether the merger and acquisition has brought obvious synergy effect to CECEP QUIPMENT,and the quantitative results are obtained;Then,using factor analysis,select a certain number of representative financial indicators and non-financial indicators of CECEP QUIPMENT,analyze and compare the indicators before and after the merger,and get a qualitative result of whether the M&A behavior of CECEP QUIPMENT has produced synergy,what kind of synergy,and how to produce synergy.The results of qualitative and quantitative research indicate that due to the corresponding support policies of the state for environmental protection enterprises,mergers and acquisitions can achieve synergies.After the completion of the acquisition of ZHAOSHENG ENVIRONMENTAI by CECEP QUIPMENT,CECEP QUIPMENT gradually occupies a favorable position in its industry,with increased operating revenue and enhanced market competitiveness.The research results indicate that the management,research and development,technology,and governance synergies brought about by the acquisition of ZHAOSHENG ENVIRONMENTAI by CECEP QUIPMENT are significant,while the financial synergies are average.However,based on the analysis of long-term,short-term,and operational synergies,the synergies are not very significant.This article provides some suggestions for improvement and provides some reference for whether other mergers and acquisitions in the environmental protection industry have brought about synergies.The innovation of this paper is to study the synergistic effect of the acquisition of ZHAOSHENG ENVIRONMENTAI by CECEP QUIPMENT,which is not limited to the analysis of financial indicators in the traditional way,but increases the event study method and economic added value,and then analyzes the operation,management,finance and other synergistic effects,including long-term analysis,short-term analysis and factor analysis,to comprehensively analyze the synergistic effect of the acquisition on CECEP QUIPMENT.