Study On The Choice Of Corporate M & A Financing Method Of Our Country

Enterprises are a micro key element of supporting one country's economic growth. The quality that numerous enterprises grow up is the major issue that concerns the national economy and the people's livelihood. Enterprises merge as an important ring in enterprises economic activity, are received much concern day by day, With the development of the economic globalization of the world and our country's entering WTO, merger & acquisition of our country has reached the unprecedented climax. Form the view of macro-management, combination will continue to act as the main means of adjusting national economic structure and promoting the strategic recombination of the state-owned economy in the future. Form the view of enterprise's strategy, 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.Financing is the most important part of the whole combination processes that determine directly the sources of the capital and efficiency of capital utilization. It plays a key role in enterprise combination. Comparing with developed country in the west, Chinese enterprises have very little chances to choose practical financing ways, because China started market economy lately and had relatively backward financial tools. In addition, the capital market developed imperfectly, which limited the combination action of enterprise seriously. Consequently, it has strong urgency and deep realistic significance to study the problem of enterprise combination.In this paper, the first part provides a brief overview of the domestic and foreign research results on mergers and acquisitions financing. Then, a number of relevant basic theories is introduced, such as the definition and motivation of M&A, the contents of the mergers and acquisitions financing, M & A financing method categories and their respective characteristics, and in contrast with the West, the prevailing methods of M&A financing in China are presented. Second, the influence factors of M & A financing choice are discussed, trying to find general M & A financing model which is suit for conditions of our country. And then, apply the above theory to a typical case. Finally, it points out the restricting factors of China's M & A financing choice and gives some countermeasures to work out the problems.Compared with western countries, the number of M&A financing methods used by Chinese enterprises is very limited and many advanced methods still left untapped. 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 conditions. They should also give enough attention to pre-M&A asset evaluation and relative studies considering foreign experience, 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.