The Research Of Business Financing On Merger And Acquisition

Along with the fifth wave, the merger and acquisition of the whole world come to an unprecedented climax. In China, the merger and acquisition are gradually maturing after nearly 20 years development. From the view of macro management, combination will continue to be used as the main means to adjust the national economic structure and to promote the strategy reorganized of state-owned economy. From the view of enterprise strategy development, combination is one of the important outer strategic development ways to enhance the competition power and to realize the sustainable development for the state-owned enterprise and private enterprise.In general, there are four stages in enterprise combination, which are investigation, negotiation, administration and conformity. As one of the practical procedures, financing can be the most important part of the whole combination processes, which determine directly the sources of the capital and efficiency of capital utilization. It plays a key role in enterprise combination.Comparing with the enterprises of western developed countries, Chinese enterprises have very little chances to choose practical financing ways, because China started market economy lately and had relatively backward financial tools. On another occasion, the development of Chinese capital market now is imperfect, and there are still many problems in financing mode that can be adapted in the combinations of Chinese enterprises, which limits the combination action of enterprise. Consequently, it has strong urgency and deep realistic significance to study the problem of enterprise combination.