Corporation Mergers And Acquisitions Financing Research

Merger and Acquisition (M&A) has been becoming an important way to promote enterprises reform, improve economic structure and make capital moveable. As far as M&A, suitable M&A financing methods is the most important factor which even affects the ultimately result of M&A. Based on deep analysis of the financing theory of western enterprise M&A, this thesis makes study on the enterprise behavior of analyzing, evaluating and decision-making in M&A financing in order to promote and perfect M&A financing theory in China.The thesis is organized in four chapters .The objectives and significance of M&A financing are pointed in the first chapter, subsequently financing methods nowadays mostly used in western countries in M&A and the relationship between the development of M&A markets and improvement of financing environment are presented, at last developing trend in western country is expounded. Chapter Two studies the effect on enterprise's financial status under several scenarios of different financing arrangement and planning. In chapter three, financing methods nowadays used in our country are presented at first and the problems now exist in M&A are raised subsequently. Based on the above study, suggestions to the development of M&A financing in China are made. In chapter four, Deep analysis of four kinds of methods is presented to improve and innovate the M&A financing.Compared with western countries, the number of M&A financing methods usedby Chinese enterprises is very limited, with many advanced methods still left untapped and our enterprises have not pay enough attention to the asset evaluation before M&A financing process nor the EPS devaluation during the process. Therefore, under the restriction of less developed capital market, those enterprises embarking on M&A should seek together with financial supervision authorities the development and innovation of present M&A financing methods considering our country's conditions. They should also give enough attention to pre-M&A asset evaluation and relative studies considering foreign experiences, choose M&A financing methods and arrange M&A financing structure which suit their own conditions and control M&A financing risk reasonably to ensure that the M&A project be successfully carried out.