Astudy On Overseas M&A Financing Mode Of Chinese Listed Company

Recently, our country’s foreign investment has been risen up rapidly, and as the main way offoreign investment, overseas mergers and acquisitions is always the most important motivation.But we find out that the financing part in the process of overseas M&A has always been the mainobstacle. So far in Chinese listed companies, the way of indirect financing used mostly in theoverseas M&A, which is hard to turn money into capital, but the fact that the PE takes role inM&A financing may solve this problem. Nowadays, the Chinese government has paid more andmore attention into the way of buyout fund, which may make the function of buyout funds moreinstinct in the process of overseas M&A financing.This thesis aims to study over the function of the buyout funds in the aspect of overseasM&A financing, and to highlight its role in the process of overseas M&A financing. Through thestudy of the case which Hony helped Zoomlion successfully merge the Italian enterprise CIFA,we can find out that the buyout funds had provided great help in the deal structure, financingprogram,information collection and so on. To further conclude, we find out that the buyoutfunds play as capital supporting, risk management and sources integration in the process ofoverseas M&A financing, which offers great help to solve the financing difficulties and avoidheavy burden the debt financing may bring to the merger firms. Finally, we provide somesuggestions to help improve Chinese listed companies’ financing activities in the overseas M&Abased on the case study, including the improvement of financing ways and the fulfillment ofbuyout funds.