Research On Financing Risk And Prevention Based On Urbaser Acquired By China TianYing

In recent years,under the constraints of carbon peak and carbon neutrality,environmental protection enterprises are facing broad market prospects and new development opportunities in the process of implementing carbon emission reduction measures.In the process of the continuous improvement of the environmental protection industry structure and the gradual optimization of the industry pattern,China’s environmental protection enterprises often integrate their own resources and the target resources through cross-border mergers and acquisitions,so as to obtain high-quality brands and technologies from overseas developed countries and gain a larger market share.In the process of M&A,financing is the core of M&A events and determines the success of M&A activities to a certain extent.Therefore,it is necessary to study financing risk management.Effectively identify the financing risks of mergers and acquisitions,and analyze the financing risks of mergers and acquisitions activities and their causes,and put forward corresponding suggestions for risk prevention and control,so that financing activities can more effectively guarantee the successful mergers and acquisitions of enterprises and the subsequent good development.This thesis selects the acquisition bwtween China Tian Ying and Urbaser for case analysis,combing with the method of literature research and case analysis in the existing literature on financing risks in M&A performance,influence factors and control method and so on research results,combined with the asymmetric information theory,the optimal sequence financing theory and analyzes the financing risk of the risk management theory to the case.Based on the case of listed company China Tian Ying’s acquisition of Urbaser,this thesis combs the introduction of M&A fund,financing scheme arrangement and application of payment means in the merger and acquisition process of China Tian Ying.This thesis identifies the financing risks before,during and after the merger of China Tian Ying and Urbaser from the perspective of the merger process,analyzes the causes of the financing risks of the merger and acquisition event from macro and micro perspectives,and puts forward reasonable suggestions for the control of the financing risks of the merger and acquisition based on the analysis.Through the analysis of Urbaser financing risk of China Tian Ying’s merger and acquisition,this paper finds that China Tian Ying’s merger and acquisition is a "snake swallowed elephant" type of cross-border merger and acquisition with high financing demand,and its financing risk is reflected in the three stages before,during and after the merger and acquisition.In this case,the causes of M&A financing risks include limited capacity of domestic PE in due diligence and post-investment links,excessive leverage financing volume,capital structure and the import of liabilities of the target of m&a and other factors.Therefore,this paper puts forward some suggestions,such as adding binding clauses,fully due due process and establishing internal financing risk fund,in the hope of providing reference for other enterprises to prevent financing risks of mergers and acquisitions and ensuring the continuous normal operation of enterprises after mergers and acquisitions.The research on financing risks and prevention of Urbaser merger of China Tian Ying not only enriched relevant researches on financing risks of merger and acquisition,but also provided certain reference and guidance for subsequent related enterprises to prevent and control financing risks in merger and acquisition activities.