Applications Of Financing Modes In Cross-Border M&A Activities Of Enterprises

The pace of the world economic integration process is more rapid when our step into 21st, development of China's economic is also concerned by international community. There are many new changes has taken in the capital market, either micro-environment or macro-environment has remarkable progress, all of these provides more channels to step into international markets for enterprises.China's M&A market has become active over the past few years, entrepreneurs and investors are not complacent any more and the starts to capital expansion in order to achieve the rapid development. As M&A activity especially cross-border mergers and acquisitions is a large project on capital operation, it is an integration of economic, political, legal, cultural and other elements. The article selected an aspects of the financing methods in cross-border merger and acquisition, as for the financing process plays an important role in M&A. There are many M&A cases in different levels and scales currently, but there are still no shortage of poor financing process which cause the poor effects of post-M&A even a failure. So selecting the right financing method is key to the success of M&A.The paper uses a method which is combination of theory and practice, and in the second, third, and fourth sections discussed the theory of finance and the influencing factors can change the choice. In particular, the article is devoted to the leveraged financing and convertible financing that is two special methods of the M&A financing, then attaches the case study subsequently. The article uses the case of BOE in leveraged financing, this is a successful and typical leveraged M&A case in our history, it can make contribution for getting more perfect results in the future by learning this case.The article selected German Daimler-Benz Chrysler merger cases in the part of convertible M&A financing, as this case was the largest amount in the history, also this case adopted convertible method in overall process, so it is a classic one. Author is not held accountable for the unsatisfactory of the post-merger integration in the article, but to focus on the convertible financing process.The purpose of analysis is that the two cases outlined proof on the earlier part of the theory, also provide some comments and suggestions on the bases of the combination of current capital market and M&A market conditions, which hope that China can really stand on the world stage to contribute to the world economy.It is the contribution that the paper gave a comprehensive consolidation and summary based on the existing research results, making the application of cross-border M&A financing model more systematic and complete in theory and framework. Also the design arid arrangement of structure and content can highlight key points, discussing two special financing model based on the expatiation of related cases to make paper more persuasive. Through two examples, we can get that the enlightenment for high synthesis and complexity of cross-border M&A, so the choice of the financing model and the way of using the model play the important role, and the paper proves the conclusion in theory and practice.