Study On The Application Of Overseas Lbobyagriculturalenterprises In China

In the background of economic globalization, mergers and acquisitions activities amongcompanies arise tremendously. As a creative form of corporation, leveraged buyouts (LBO)increase the financial leverage to fulfill the mergers and acquisitions activities. This financialpattern can effectively solve the problem of difficult financing for private firms, to assistenterprises to expand, which is a good way to expand investment for business. At the same time,this pattern also gradually accepted by the domestic capital market. As an agricultural country,in the context of today’s merger wave, agricultural enterprises overseas mergers andacquisitions play an important role in the economic development. LBO will help domesticagricultural companies to expand overseas and industrial transformation and upgrading.This paper summarizes the relevant theory and literature which is applicable to Chineseagricultural M&As. Then we analyze the present situation of agricultural LBO, the mode ofinvestment, and the present facing difficulties. After that, choosing the Chinese agriculturalenterprises overseas mergers and acquisitions as the research object, and select the mostrepresentatively case of M&A, such as SHINEWAY GROUP’s acquisition of Smithfield in2013. Through analyzing this case, summing up the successful experience and finding out theproblems of overseas M&A in Chinese enterprises. Finally, in the view of the problems thatexist in this case, give out advice that suitable for overseas M&A of Chinese agriculturalenterprises and related government department.