Financing Of Mergers And Acquisitions Research

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 enterprise's 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. From 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. From 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.The research method of the real example after the theory is applied in the structure of this article.First part is the summary of financing in merger & acquisition. Proceeded from basic conception at first, this part defines strictly the concepts: enterprise's merger, enterprise's financing, financing of merger & acquisition. On this basis, the article describes exhaustively the concretecourse of financing, then analyses especially the cost of financing and financing plans.Second part is the way and characteristic of the overseas enterprise financing in M&A. There are four kinds of ways in M&A of the overseas enterprise financing mainly. Debt financing means merge finances through the debt; Rights and interests financing mainly includes stocks financing, stock for stock M&A and financing based on rights and interests; In merge application mix financing consists of its arrangement and its application of tool. Seller financing, leased financing and note financing are introduced in the particularity financing. In addition, the merge financing of foreign enterprises has many characteristics that is enormous scale, wide in variety about merge financing tools, developed intermediary and means of payment which extensively is adopted by cash added to stock.Third part is the current situation and countermeasure of merge financing in our country. The problems are as follows: the channel of financing is narrow and the scale is too small; the Chinese characteristics listed enterprise's equity structure is extremely unreasonable and the market-based behavior of merge' financing is obviously weakened; the function of investment bank in merge financing is very limited; MBO is irregular in operation and has bottlenecks of fund. The measures are as follows: develop the capital market and widen the channel of merge financing; strengthen innovation of financial products, enrich and perfect the tools of merge financing; set up and perfect the policy system of merge financing of enterprises in our country; improve the strength of the financial intermediary and promote the smooth development of merge financing; utilize securities financing of assets; set up the investment funds etc.