Financing Of Mergers And Acquisitions Research

Five large-scale enterprise mergers once happened in the history of European and American enterprise development. In recent year, the tide of enterprise restructure and merger appears in China, and the related theories inevitably face new challenges. In China, related research fruits mainly focus on the introduction of foreign theory and practice of enterprise merger, which obviously formed under the background of foreign developed market economics. There are a few corresponding studies of theory and practice about state-owned enterprise merger, based on China's less developed market economy, and the study into financing problems of enterprise merger is especially scarce in China up to now. however, merger and acquisition (M&A) are important ways to restructure the business. The financing problem is vital and inevitable element to the enterprise' s success. Some kinds of financing tools such as junk bond etc. are inexistent. And some kinds such as MBO still remain consummated. With the development of M&A in China, the diversification of financing tools becomes essential. To solve the financing problem is not just to transplant the foreign financing tools simply but a complicated system work. It not only require a perfect multi capital market system, but also need to cleanup the related laws. The article through the analyze of the financing tools in the international capital market try to discuss how to use the financing tools reasonably and how to enrich the financing tools in out country.Firstly, this article divides the financing tools into three categories: debt-financing tools, equity financing tools and mixed financing tools. Secondly, the article analyzes their different characters, their exercises in the international capital market and their applicable conditions. Thirdly, the article analyzes the implementation of these three financing tools in China and the different market environment among China and the developed countries. In the same time, the author...