The Research On The Application Of Trust In M&A Financing

M&A refers to mergers and acquisitions between enterprises. M&A can reducetransaction costs effectively, achieve diversification, improve the competitiveness ofenterprises，expand the scale of enterprises rapidly, M&A is an important strategic choicein the enterprise development process. The nature of the M&A is the re-allocation ofsocial resources.The process of M&A is very complex, and enterprises will face a variety ofproblems in the M&A process. The financing problem is one of the main factorsrestricting the implementation of enterprises’ merger and acquisition strategy. China’sM&A started after the reform and opening up, and China’s real M&A only has a historyof more than ten years. Coupled with China’s capital market is underdeveloped, financinginstruments are relatively simple, therefore， the financing problem has been the"bottleneck" of the development of M&A in China.The main content of this thesis is the application of trust in M&A financing. Afterthe deep study of the status of M&A financing and the development of trust in ourcounty，I find that trust can participate in M&A by its institutional advantages，when trustsolves the problem of M&A financing, it achieves its own development. Then, this thesisdesigned four trust merger mode based on the trust system and financial innovationtheory, and described each of the modes in detail. At the end of the paper, I used themethod of case analysis to discuss and prove that trust can play a very important role inM&A financing. This study is expected to provide a reference for China’s enterprises tomerge and acquire by trust, and to provide ideas for the development of China’s M&Afunds.