Our Country Private Enterprise Overseas M&a Financing Problem Research

Overseas merger and acquisition is not only an important way for enterprises tocarry on foreign direct investment, but also an effective way to expand the scale andimprove the international competitiveness. Along with Chinese private enterprises’scale and their own strength to be constantly expanded and strengthened, more andmore private enterprises began to carry out overseas merger and acquisition activityand gradually become an important member in Chinese Overseas M&A activity.Private enterprises’ overseas M&A activities are attracting the whole national andeven the worldwide attention. For example, Lenovo Group successfully acquired thePC business of IBM Group in2004and China Geely Group acquired Volvo CarCorporation successfully in2010. However, overseas M&A activities usually costhuge money, private enterprise is difficult to meet the M&A funds needed onlydepend on their own capital, financing problems in private enterprise is the key ofsuccess in M&A activity. Therefore, in this case, the specific analysis of financingproblems in Chinese private enterprises’ overseas M&A has great practicalsignificance.This paper firstly introduces the related concept of overseas merger andacquisition financing, summed up a variety of overseas M&A financing theory by themajority of the scholars at home and abroad, analysis the advantages anddisadvantages of the various M&A financing methods and put forward to makefinancing decision. Secondly, it analyses the current situation of Chinese privateenterprises overseas mergers and acquisitions financing. On the basis of combinedwith a large number of private enterprises’ merger cases and the latest data, it analysisthe characteristics and mode of private enterprises in overseas mergers andacquisitions financing at present stage. Thirdly, analysis the external environment likethe capital market, laws and regulations, and the enterprise internal environment,points out that the root problem of private enterprises’ overseas mergers andacquisitions financing then analysis of its specific reasons. Finally, from two aspects, the microscopic angle and the macroscopic angle, it put forward several suggestionsfor the perfect private enterprises in overseas mergers and acquisitions financing. Thearticle is based on less financing research in the private enterprises’ overseas mergersand acquisitions, it explore private M&A financing in the current situation and theunderlying causes of financing problem and propose specific solutions. This articlehas guiding significance on private enterprises in overseas M&A financing.