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Theoretical Research On Financing In Mergers And Acquisitions

Posted on:2007-10-07Degree:DoctorType:Dissertation
Country:ChinaCandidate:L JiaFull Text:PDF
GTID:1119360185994320Subject:Political economy
Abstract/Summary:PDF Full Text Request
To an enterprise in urgent need of fast expansion and eager to embrace a new domain, merger can capture the opportunities for further development with the minimum costs and risks. Therefore, merger and acquisition (M&A) is considered the typical characteristic of mature capital market, which can promote the efficiency in the conformity of market resources. In September, 1993 , "BaoYan" can be seen as the prelude to the M&A of corporations in our country. At present, China has become one of the most noticeable merger market in Asia, even the world, with the influence being increased each day.Judging from the angle of self-development for enterprises and the external environment, the impetus to promote the expansion of merger market is as follows: 1) the modification of industrial structure brought about by the urgent problem of overabundance in productivity, together with steady advancement of the reforms for state-owned enterprises, has offered a golden opportunity for further development of the merger market in our country; 2) share structure reform is the catalyst for the active merger market; 3)the industrial capital home and abroad will offer a solid backing for merger market; 4) the change in the domestic stock market create benign external conditions for the flourish of merger market; 5)foreign capital has entered China's national market in the form of cross-national merger. Thus it can be seen that our national merger market will welcome a favorable opportunity and prospect.In the recent years, trillions of dollars have spent on the M&A annually worldwide, which is due to the fact that a powerful financial support is indispensable...
Keywords/Search Tags:financing in M&A, debt financing, equity financing, financing structure, leveraged buyout, investment bank
PDF Full Text Request
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