Research On The Performance Of Enterprise Mergers And Acquisitions Under The "Listed Company + PE" Model

With the continuous development of China’s economy,in order to meet the needs of the new stage of economic development,the government proposes to promote supply-side structural reform and promote high-quality economic development.Under the background of such national policies,a large number of traditional manufacturing enterprises with structural deformities and overcapacity have been gradually merged and eliminated,and high-value-added emerging green economy enterprises such as energy conservation and environmental protection are increasingly supported by national policies.The gradual decline of traditional manufacturing industry and the gradual rise of new environmental protection industry are one of the important reasons for the rapid development of China’s M&A market.With the continuous development of China’s M&A market,there are more and more PE institutions in the market.PE institutions rely on their own rich market information resources,strong capital acquisition capabilities and advanced management concepts to cooperate with listed companies to set up industrial M&A funds,gradually forming a "listed company + PE’s M&A model.However,the formation cycle of this model is relatively short,the development is not perfect,and there are still many problems that need to be solved.Therefore,it is of practical significance to analyze the M&A fund of the "listed company + PE" model.This thesis selects the case of Runbang Co.,Ltd.for analysis,and tries to explore the risk factors and solutions under the merger and acquisition mode of "listed company+ PE" through the study of the case.Runbang Co.,Ltd.has gradually promoted the strategic transformation of the enterprise since 2015,with the intention of creating an efficient mode of rotation in the traditional manufacturing industry and environmental protection industry.To this end,Runbang Co.,Ltd.chose to set up an industrial merger and acquisition fund with Jinyao Assets and Huatai Asset Management to expand the environmental protection industry through the layout of the merger and acquisition model of "listed company + PE".On the basis of the introduction of the strategic transformation of Runbang Co.,Ltd.,this article analyzes in detail the establishment of M&A funds and the specific fund operation and management mode,as well as the application of this case in practice by consulting relevant literature and enterprise announcements.Through the event research method,financial index analysis method and economic value-added method,the performance analysis of the establishment of industrial mergers and acquisitions funds and later mergers and acquisitions of Runbang shares.In the event research method,the two time points of Runbang Co.,Ltd.to establish an industrial merger and acquisition fund and complete the merger and acquisition of China National Oil Environmental Protection were selected as the date of the double event.In the financial indicator analysis method,in addition to the conventional financial indicators,three market data indicators of turnover,operating income proportion distribution and gross profit composition ratio were In the economic value-added method,the EVA calculation formula is adjusted according to the actual situation of the case.The above analysis results show that the short-term M&A performance of Runbang Co.,Ltd.is not ideal,but the long-term development trend is good.However,the case analysis also shows that there are risks in this model to a certain extent.Based on this,the case study believes that in view of the possible mergers and acquisitions risks,first,we should carefully choose PE partners and try our best to find PE institutions with high prestige and large scale in the industry;second,we should carry out mergers and acquisitions according to the Ensure the long-term development of enterprises;Third,we should strengthen the integration and management of resources after mergers and acquisitions,so that the target enterprises of mergers and acquisitions can be fully integrated into listed companies,and form the scale effect and synergy of enterprises as soon as possible.