The Study On M&A Financial Channel Of Enterprise

M&A is the most common kind of way in the capital operation of a corporation, which can realize the expanding of a corporation at a high speed with the low cost efficiently. This is exactly unique glamour of M&A. And this is the important reason for the fifth M&A climax coming into being. Today, the M&A scale, which become larger and larger, is a costly project because of related to a large amount of capital transferring. It is too hard to accomplish M&A, if there are not enough financing. So, it isn' t a overstating saying at all that financing is a key step of M&A.In 1984, Baoding textile machinery manufacturer purchased Baoding knitting apparatus manufacturer by undertaking its debt. This is the earliest case of M&A in our country. From then on, M&A has got rapid development. M&A scale has increased 70% every year since 1998. And now, M&A market of our country becomes the third largest market in Asia. Even so, compared with developed country, the block of the financing channelhas seriously restricted the function of M&A which can promote enterprisefast-developing, because of the unripe capital market and he imperfectfinancial system. In such a case, it has realistic meaning to study the western financing theory, use its advanced experience for reference, analyst the current situation of our M&A financing and origin cause of formation and table some proposals pointedly.Firstly, this paper analyst the advantages and disadvantages of each kind of financing theory, and compared the current situation of financing channel choosing in our country and in developed country. And, this paper point out that the firms in developed country have various financing channel, and financing tools, and debt financing more than equity financing, and begin to use one-stop shopping. On the other hand, due to the reasons in many aspects, the firms in our country have few financing channels to choose for M&A, and concentrate on the loan and the stock financing mainly. Furthermore, the financing tools are very underdeveloped in our country.Secondly, this paper build a M&A financing channel choosing model which regard enterprise value maximize as the goal. According to the model, the merger firms can choose the best financing channel from equity...