Research On Transnational M&A Financing Strategy Of XX Company

With the development of economic level, economic globalization is increasing. Thecompetition between corporations is becoming more and more intensive. In order to obtainlong-term development of enterprises and enhance their international competitiveness, moreand more enterprises start to go abroad, looking for foreign markets and participate in theinternational division of labor. The Cross-border M&A is an important form of participationin the international division of labor.Transnational M&A is not only an opportunity, butalso a challenge for M&A enterprises. A successful transnational merger and acquisitioncan gain the necessary international resources, and increase the value of enterprises. It alsocan promote an enterprise’s industry status, gain the scale effect and promote the sustainabledevelopment of enterprises. In an transnational M&A, financing situation is the key to thesuccess. The XX company’s M&A in2009is a typical representative of transnational M&A, XX company’s acquisition of Y company belongs to the behavior of domestic privateenterprises’ transnational merger. Since there is few completed transnational M&A,it isnecessary for us to research on financing situation of XX company’s M&A, hoping toprovide reference for China’s enterprises’ transnational merger and acquisition.Firstly,the article introduces the background of the topic, the domestic and internationaltrends in the field, the theory of transnational merger financing. Then the paper introducesthe background of case at home, the motivation and the process of the M&A case; Next, thepaper focuses on the financing strategy of XX enterprise, the analysis mainly from aspects ofthe meger and acquisition’s fund demands, due diligence survey, the payment of M&A,financing, financing effect and financing risk.Finally, according to the study on M&A caseof XX company, the article draws the conclusion, at the same time, it put forward somerevelations separately from point of the enterprise and the government’s view, hoping toprovide reference for Chinese enterprises’s transnational merger financing.The contribution of this paper is as follows.The activity of transnational merger andacquisition is increasing, but the domestic and international studies of cross-border M&A isstill relatively few.This paper uses the case study method, focuses on the case’s financingstrategies and summarizes the successful financing experience.Finally, the paper putsforward some revelations separately from the perspective of the government and enterprises,which can provide the reference for the transnational merger and acquisition of Chineseenterprises in the future.