A Research On The Financing Means Of Cross-border Mergers And Acquisitions

From the1990s, the global economic have developed rapidly, mutual penetration of the world’s economies are increasingly interdependent, cross-border M&A activity is becoming increasingly active. With China’s accession to the WTO, China will continue to expand the extent of opening up, China’s enterprises are faced with more brutal competition. Chinese enterprises on the world stage to deduce their own style, the cross-border mergers and acquisitions is the stepping stone, that we enter the international market. As we known, in order to successfully complete the strategic objectives, and the inevitable do not well without a strong corporate funds as supporting. Cross-border M&A strategy and success of the enterprise in large part due to acquisition financing, financing mode is the key word of the problem of financing, such as the diversity of the means of financing as well as different means of financing the cost of financing, financing risks, and different finance income. It has become a highly theoretical value and practical significance of the financial sector and the business community topics worthy of our in-depth to explore and study.This paper first reveals the basic theories of the cross-border M&A financing, and laid a solid theoretical foundation. Then it interprets details about types of cross-border M&A financing method (internal financing, external financing, special financing). From the cost of capital rate point of view, it explains costs and risks of the different financing means which were compared with developed countries. At the same time, because of the differences from domestic acquisitions and cross-border M&A’s particularity itself, the fourth chapter of the article-analyzes the exchange rate and tax and other special economic problems in it. This article chooses the dialectical method that combines theory and practice. Chapter5gives a detailed analysis of the Lenovo acquired IBM’s case and other special highlights of the financing issues. Finally, combined with the current reality, this paper points out that the main problems of the financing mode of Enterprise cross-border mergers and acquisitions in China and put forward proposals to tackle the problems.The main contribution of this paper is:First, the case with the theoretical, the theoretical basis of the cross-border mergers and acquisitions financing to make a profound exposition. This article does not use the methods of empirical research about this article, instead of using the method of combining theory and case is taken in case stays care theory, research articles of financing not only special, more general universality. The article is more persuasive and reference. Second, combination of micro and macro. The article is different from other articles is a combination of micro and macro. The articles not only about the type of financing, financing costs and financing risks, the finance income of the various financing methods and summarizes the current status quo and foreign gap. Also the external financing environment and the enterprise’s own internal environment is also included in the scope of the study. Third, through the acquisition of IBM’s case for analysis raised the serious problem of cross-border M&A financing and make recommendations accordingly. The cases are representative and in our study can fully reflect the analysis of problems and solutions in this article.