Deal Structuring Of Mergers And Acquisitions

With the explosive growth in the number of mergers and acquisitions in recent years and the introduction of more laws and regulations,deal structuring of mergers and acquisitions becomes more and more complicated.There are two reasons for the complication.On the one hand,acquirers are getting more and more mature,they need to design the deal structuring to meet regulatory requirements and stakeholder demands.On the other hand,laws and regulations of M&A are becoming more and more perfect.Changes in the internal and external environment make the deal structuring of M&A become more complex.Foreign scholars have summed up it,but M&A are indigenous,only according local laws,local accounting standard,local tax regulations,we can design appropriate deal structuring.There is a lack of generalization and abstraction of the local deal structuring.The method of literature research and case study are used in this paper.Firstly,this paper summarizes the factors influencing deal structuring of M&A,and then,through the analysis of the influencing factors and the experience learned from the cases,this paper selects and analyses tax treatment,debt arrangement and enterprise existence,and summaries 11 basic transaction mode.Each mode is introduced,and a case of the mode is introduced to make the mode easier to understand.Finally,the most widely used in the practice is cash-for-stock,so this paper selects the case using that mode,and analyses the case's deal strcturing.M&A is a system,it requires a global perspective to design deal structuring.Enterprises can refer the decision tree of deal structuring offered by this paper.On this basis,in order to meet the interest demands of the two sides in M&A,enterprises can combine Multiple modes or directly use the basic mode to design a feasible deal structuring and maximize the profit.