Research On Cross-border M&A Financing Choice

With our nation's B&R strategy and under the influence of RMB exchange rate depreciation, from 2016, the Chinese enterprises cross-border m&a volume comes roaring. And because of the large transaction amount of cross-border m&a, the success is quite dependent on the planning of the financing way.In this paper, guided with the theory of financing structure and through the analysis of the method of payment, financing tools, and related policies, also combining with the cases happened in the past two years, analyses the key factors influencing the enterprises to choose the financing way, and giving related advices.With the study it found that (l)a state-owned enterprises on the cross-border M&A financing are more likely to get the support of financial institutions, and private enterprises financing more flexible. (2)strategic cross-border M&A tend to choose the steady way of financing, invest higher percentage of their own capital, and financial cross-border M&A tend to choose the radical way of financing, prefer to lower own capital. (3)payments of cash flow and measures of credit comprise the overall risk of a financing plan. The lower of overall risk, the higher proportion of debt financing. (4)enterprises in cross-border M&A financing planning need to determine the main purpose of the cross-border M&A, and then to determine the proportion of their own capital, following assessing overall risk to determine the proportion of debt financing, the remainder part using equity financing to raise.In general, the means of cross-border M&A is similar, but there are still many influence factors of individuation, companies need to determine their own financing ways. Meanwhile facing the continuously development of financial markets, enterprises also need to use market financial tool innovatively.This paper hope to give the meaningful theoretic and practical advice on cross-border M&A financing through the theory and case studies.