Abstract

Under the “The Belt and Road”, M&A has become the first choice for environmental protection companies to expand their business scope and enhance their competitiveness to win more PPP projects. This paper takes the Yongqing environmental protection merger and acquisition of Xiangyin Garden as an example, adopts factor analysis method to study the financial data of the company before and after the merger and acquisition, and analyzes the impact of this merger and acquisition on the environmental protection financial performance of Yongqing. The study finds that after the merger and acquisition, the financial performance of the company presents a fluctuating state. In addition to the decline in solvency, the profitability, operating capacity, and development ability have improved well in the first quarter of the M&A announcement and one year after the acquisition. Overall, it has played a certain role in improving the short-term financial performance of Yongqing Environmental Protection.

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