Research On The Application And Risk Of Leveraged Buyout In Chinese Private Enterprises Overseas Mergers And Acquisitions

In the year of 2016,Chinese enterprises' overseas mergers and acquisitions are very active.Whether trading scale or number of transactions have hit record highs.On the one hand,it is because the national policy constantly supports Chinese enterprises to go abroad and expand overseas market;Another important reason is that the enterprise's own strategic plan.In the context of globalization,the allocation of assets,absorbing overseas advanced technology and management experience,accelerating industrial optimization and upgrading is the key to achieve the leap-forward and globaization.In this context,the first time domestic private enterprises in the transaction size and the number of transactions exceeded state-owned enterprises,and become the dominant overseas mergers and acquisitions activities.However,private enterprises,due to their own size limitations,in the acquisition of the general amount of overseas companies,more and more need to use the way of leveraged buyout.This kind of "snake-swallow elephant" is gradually known and accepted by domestic capital market.This paper introduces the theoretical basis of the leveraged buyout,and analyzes the motivation and necessity of enterprises' overseas mergers and acquisitions.Then further quantitative analysis of the recent five years of China's merger and acquisition market in the status quo,induces private enterprises' overseas mergers and acquisitions activity in the difficult.On this basis,leveraged buyout approach is proposed in this paper can help private enterprises to carry out overseas mergers and acquisitions in China.Subsequently,this article takes the case of Ai Paike leveraged buyout of Lexmark as the research object,and carries on the meticulous analysis to this case,summarizes the successful strategies with relevant theories.Finally,the general risk points in offshore leveraged buyout activities and the specific risk points in selected cases are analyzed in detail.These discussion and analysis are the practical reference value for the overseas leveraged buy-out of our private enterprises in the future.