The Research On The Cross-border M & A Financing Mode Of Lenovo Acquiring IBM PCD

Cross-border mergers and acquisitions can expand the scale of the enterprise, obtain competition advantage and avoid foreign export policy. As one of the effective ways of internationalization, cross-border mergers and acquisitions get more and more attention of companies around the world. With the speeding up of world economic integration, as well as China's rapid economic development, enterprises of China in order to gain advantage resources, improve their international status, also more and more involved in the army of cross-border M&A, and gradually become a new important force in the enterprise cross-border M&A. Successful cross-border M&A can let enterprises enhance its international status, to improve the enterprise value and make enterprise get long-term development. In cross-border M&A, the financing way is critical factors. Such as, when TCL group mergers and acquisitions on the Thomson TV business, TCL used large amounts of its own funds and syndicated loan. The more conservative and single financing way lead TCL to fall into the long-term financial risk, and created huge profits in the past 20 years is used up in the failure of cross-border M&A. For a long time, the enterprises of our country has many problems in cross-border M&A financing, and these problems have become one of the factors hindering the Chinese enterprises to expand overseas market. The wrong choice of cross-border M&A financing is likely to lead to the failure of the enterprises' cross-border merger and acquisition.Compared with labor-intensive industries, the IT industry is technology industry and capital intensive industry, need more operation, development and cross-border M&A capital. Lenovo as the largest PC maker of IT companies in China, its development path and cross-border M&A financing conditions are similar to those of other IT industry enterprises, in addition, Lenovo brought IBM PCD involved in the largest amount cross-border M&A capital in China, and Lenovo's financing choice is relatively successful in cross-border M&A of China. Therefore, Lenovo merger and acquisition of cross-border IBM PCD of transnational merger and acquisition the financing of Lenovo cross-border acquired IBM PCD is worth studying.This article selects the Lenovo merged IBM PCD as a study case of cross-border M&A, and analyzes its financing way. In addition to, this paper analyzes the impact of financing way on Lenovo debt paying ability, operation ability, profitability and financial risk. Finally it is concluded that the macro factors such as financial environment and cross-border M&A motives, capital structure, enterprise life cycle and control transfer problem of micro factors affect enterprises to choose what kind of financing way of transnational M&A, and diversified financing way is beneficial to the success of the cross-border M&A, the choices of cross-border M&A financing mode affect the operation ability, solvency and profitability and financial risk of cross-border mergers and acquisitions enterprises.