Due Diligence Investigation Study Of HR Company’s Equity Acquisition Of PZ Gas Company

Natural gas as a low-carbon,efficient,clean energy is gradually replaced by coal traditional fossil energy,especially the urban residents,industrial and power generation with gas demand growth,brought development opportunities to city gas operators,so the gas companies through mergers and acquisitions occupy the market and get development opportunities.However,the objective factors such as information asymmetry of market participants make it possible for enterprises to obtain rich profits from mergers and acquisitions,or to carry forward with heavy burdens.In this case,the due diligence becomes the key to the success of M&A.How to implement effective due diligence to reduce merger and acquisition risks,discover enterprise value,and help the acquirer make reasonable merger and acquisition decisions is worth studying.This thesis takes the due diligence of HR company’s equity acquisition of PZ Gas Company as the research object.Firstly,by reviewing relevant theories and literature,the necessity and content of due diligence before merger and acquisition are briefly expounded.On this basis,the key points and implementation procedures of due diligence of gas supply enterprises are summarized to provide a theoretical basis for the writing of this thesis.Secondly,in combination with the theory of M&A motivation,by analyzing the selling motivation of the target enterprise,we can judge whether it should be used as a suitable acquisition object to carry out due diligence before M&A.Again,with due diligence related theory as the guidance,detailing the PZ gas company law,management,the implementation of financial due diligence process,according to the characteristics of the gas supply industry and the target enterprise reality,focus on analysis research key points and difficulties of each aspect,and puts forward the solution,make the due diligence to identify potential risks effectively.Finally,the thesis further analyzes the risk and growth of the merger target from the qualitative perspective,and analyzes the merger value of PZ Gas Company from the quantitative perspective.Through the analysis of the acquisition price,risk and value,it further strengthens the supporting role of the merger decision of discovering value and reducing risk through due diligence.Through the three aspects of PZ gas company due diligence points,the results of the investigation,after in-depth research and analysis of the fully effective identify the risk of the enterprise potential,hidden,at the same time more real restore the enterprise real financial situation,also lay the foundations for the M&A value analysis,thereby helping to reduce the excessive M&A premiums M&A risk failure.Therefore,this thesis argues that due diligence before M&A should help reduce M&A risks from the three purposes of proving risks,discovering value and reducing acquisition premium.In specific implementation process,the law,management,financial due diligence be short of one cannot,and focus on the corporate charter qualification,supply and marketing contract risk,legal risk,network and terminal security evaluation,profit points,to borrow big data comparison,IT validation,questionnaire investigation,expert evaluation and so on practical analysis methods to help improve the quality of due diligence.It is hoped that the research and analysis of this thesis can provide reference for the due diligence before merger and acquisition of gas supply enterprises.