Mergers And Acquisitions In China Means Of Financing Research

With the development of market economy, mergers and acquisitions (M&A) , as an important way for the enterprises to enhance their competitiveness and access the development, is playing a more and more important role. M&A will enable enterprises to a low-cost expansion, and in the short term, gaining the rapid expanding and growth. With the global acceleration of the process of economic integration in the world, the wave of corporate mergers and acquisitions emerges, and it has become a readjustment of the economic structure and the internal driving force of the basic mechanism. In China, with the acceleration of the process of market-oriented, as a vector of the market economy, enterprises must take the mode which adapt to international world to produce, operate, manage and gain the development and growth. As Chinese state-owned enterprises reform, M&A has become beautiful scenic routes in the capital markets, will also become an emerging industrial power in the process of Chinese economic structural adjustment. From the point of view of research, M&A is a complex science, specifically including the Industrial Economics, Financial Theory, management and other disciplines. Financial Theory analysis throughout the entire M&A process, it includes an analysis of corporate financial objectives status, acquisition pricing, mergers and acquisitions corporate finance, mergers and acquisitions of financial performance evaluation, and so on.M&A is an expensive project, how to choose the mode of financing is one of the key factors to the success of the merger. In modern acquisition, more and more enterprises attach importance to the choice of various means of financing, in order to ensure the progress of mergers and acquisitions smooth. In the developed market economy countries, the market system is sound and complete, and money supply is adequate. In these countries, the overall trend of the capital market is like that, the supply of capital funding is larger than needs. Enterprises need only consider the choice of financing ways to minimize financing costs in the established financing risks, that is, how to get the capital structure of which the cost of financing is the smallest.In our country, the financing environment is not relaxed, because the market economy system is still in the early stages of development. Financing channels and tools are not complete and clear, enterprise financing on the quantity and type of choice is still relatively small. The primary objective of the financing is inevitable pursuit of an adequate and stable source of funding, then considering how to reduce financing costs of the issue. Therefore, in the study of Chinese M&A financing problems, we can not simply copy the mature financing theory, we must make it be integrated with Chinese actual conditions, and make specific analysis and judgments.This paper takes the firms activities in the process of the M&A financing as the main content. First of all, the theory of mergers and acquisitions of enterprises related to the financing are reviewed, it tells the main means of financing on mergers and acquisitions, and the in-depth study of the status of Chinese acquisition financing. Through the analysis, it exposes some problems that Chinese enterprises face in M&A financing and the reasons for these problems to be analyzed. As a focus, from the perspective of decision-making, it analyzes the impact of M&A mode of financing options, the costs of the various means of financing and risks as well as the mode of the selection process of financing, it also make a comparison in the two financing ways of M&A between the international and our country. This means equity financing in two ways the best means of financing a combination - that is, the financing of corporate acquisitions optimal financing structure, and concludes with a complete and innovative means of financing our merger proposal.