Analysis Of Mergers And Acquisitions Payment

In the 21st century, Chinese nation-owned companies are facing the further innovation determining their fate. The innovation mainly includes the following contents: changing out-of-date mechanism, exerting advantages in comparison and achieving internationalisation. These three innovations all closely relate with the most advanced merger&acquisition (M&A) manners in the era. Changing mechanism utilizes Management Buy-outs (MBO); conformity utilizes strategic M&A; and internationalisation utilizes M&A with foreign capital. Obviously, M&A is the highlight of these three innovations. It's the accelerator for the development of market economy. The core step to implement M&A --- choosing payment manner, has more and more caught people's attentions. After the purchaser has made the decision to M&A its goal company, it becomes a very important question that which payment tool should be adopted to gain that company's assets or stocks. Different M&A payment manner has different influence on the finance. Whether the payment tool adopted is appropriate, not only influences the implement of incorporation strategy, but also displays different values of M&A information, which will further influence the operation of M&A markets, and even determine the final result of M&A transactions. In general, there are following payment manners of M&A: cash payment manner, stock payment manner and integrative securities payment manner. Cash payment manner is the main payment manner, occupying the largest proportion. The next is stock exchange manner. And fixed income security payment manner only occupies a very small proportion. In this thesis, the basic theories of cash payment manner and stock payment manner are discussed, that is, various hypotheses, financing selection and economic benefit analysis; practical cases in these two manners are demonstrated respectively; and some concrete data in Chinese stock payment is enumerated and analyzed. The conclusion is drawn that cash payment will keep as the main M&A manner in a long time due to the limit of Chinese laws and financial markets conditions, but with the proceeding of innovation and development of agencies, stock payment and integrative security payment are also feasible. There is certain difference between multinational incorporation and domestic incorporation, which is also a hot topic discussed in recent years. Thus, multinational M&A is also studied and concluded referring to domestic M&A manners. The conclusion is drawn that although multinational M&A in China develops fast, there is still much difficulty on M&A with for listed company that foreign company share for some reasons such as policy and national situation. With the issue of laws and rulesrelated with foreign capital-funded companies and M&A with foreign capital, foreign capital will be a very active factor for M&A of listed company.