The Research On Financing Method Of Overseas Merger And Acquisition Of Different Types Of Chinese Enterprises

With the further implementation of the strategy of "going out", the number and the scale of Chinese enterprises to participate in overseas mergers and acquisitions expands unceasingly. Overseas acquisitions generally need massive capital support. The completion of overseas mergers and acquisitions, to a large extent, depends on whether there is regular financing channels, controllable financing risk, and optimization of financing. Making good use of financing instrument has become one of the important factors of the success of enterprises overseas mergers and acquisitions.Drew on the research of domestic and foreign scholars on mergers and acquisitions financing, overseas mergers and acquisitions financing and financing method of different types of enterprises, this paper finds that study on financing method of overseas M&A are scattered, rough, macro, and the study on micro aspects continues weak, lacking practical directive sense for enterprises overseas mergers and acquisitions.Based on the theory of basic financing, internal capital markets, financial growth cycle and credit rationing, and the application of internal financing, debt financing, equity financing, and blended financing, this paper analyses the specific process of financing and the operation of financing tool through financing cases of10enterprises. This paper classifies and analyzes these cases from enterprise organization form, nature, whether listed and enterprise scale. This paper finds that conglomerates can make use of internal capital markets, and financing platform of overseas subsidiary and listed enterprises to obtain more widespread financing sources; state-owned enterprises have financing advantage on credit; there are more restrictions on financing of private enterprises, they can use more flexible method, like swapping project for the capital, the private equity fund; different size and development stage of the enterprises are facing different financing constraints, and financing channels of small and medium-sized enterprises or unlisted enterprises are more narrow, and most of them rely on internal financing, limiting its overseas mergers and acquisitions. Overall, Different types of enterprises, should consider its own conditions and advantages in the overseas merger and acquisition tide, and actively expand the financing channels. This paper hopes to provide useful theoretical and practical guidance for Chinese enterprises on overseas mergers and acquisitions financing, by combining the theory with practice.