Research On Innovation Model Of Chinese Private Enterprises’ Cross—border M&A Supported By The PE

Economic globalization and integration promote our country actively participation in international division of labor and cooperation, join WTO and called for the enterprises to "go global" policy to speed up the pace of Chinese enterprises transnational mergers and acquisitions, especially08after the global financial crisis, and the quantity and amount for our country enterprise transnational merger and acquisition has been growing rapidly. In the meantime, China’s private enterprises can actively join in the wave of cross-border mergers and acquisitions, according to the author in recent years China’s foreign direct bulletin, found in the number of Chinese private enterprises cross-border M&A in total increasing proportion in cross-border M&A, and accounts for more than50%, as one aspect of cross-border M&A can not be ignored.At the beginning of2012,Sany Heavy Industry joint Citic Industrial Investment Fund successful wholly owned acquisition Putzmeister Holding GmbHof Germany’s. This article was inspired by the case, considering the difficult financing for private firms, lack of experience of M&A, the status quo, from the height of the M&A mode for Chinese private enterprises cross-border M&A with PE support for further research. The purpose of the research is whether the M&A model can help private enterprises to go out, can increase shareholder wealth, can achieve a win-win situation.High efficiency enterprise management, hasn’t the government background, this is the advantage of private enterprises in cross-border M&A in our country; Lack of the experience of overseas M&A, the enterprise with low credit financing difficulties, this is the disadvantage of private enterprises in China, also caused our country private enterprise of the main causes of high failure rate of transnational M&A. In order to improve the success rate of overseas mergers and acquisitions, saving the cost of the acquisition, reduce loss in mergers and acquisitions, private enterprises in our country is also actively preparing for cross-border M&A. For example in the host countries set up subsidiaries to understand the local laws and culture; Hire experience in international institutions as a financial and legal advisers, to help the investigation of the target company financial situation, development prospect. From the current situation of private enterprises in our country, and only a handful of companies have the qualification, and the principal-agent problems of transnational M&A, lack of efficiency.In order to improve the efficiency of cross-border M&A, solve the problems encountered in private enterprises cross-border M&A in our country, this article from the Angle of M&A mode to have local PE in-depth analysis and research to support private enterprises transnational M&A. By using the case method to Sany joint local PE acquisitions Putzmeister Holding GmbH detailed analysis, event study method and M&A performance influence factor model for25private enterprises in our country29cases for short-term M&A performance study of transnational M&A, the results found that PE support of private enterprises cross-border M&A can significantly increase the M&A performance. The study results not only from the micro level to demonstrate this acquisition pattern will help our country private enterprise to go out, increased shareholder wealth, realize win-win situation of the private enterprises and PE; But also from the macro level proved conducive to the healthy development of China’s industrial upgrading and economic, to promote the economic development of China has important practical significance.