Research On The Mechanism Of Buyout Fund In Overseas Mergers And Acquisitions

Due to the influence of many factors,Overseas Mergers and Acquisitions(M&A)start to attract Chinese companies for the past few years.In 2016,the number of and the amount involved in China mainland companies conducting Overseas M&A grew drastically—trading volume increased by 142%and trading value by 246%,exceeding the sum of Chinese companies Overseas M&A transactions value for the past four years.We can truly build a diversified financial supporting system and achieve "Go Globally" macro-strategy,only if we nurture more financial supporting subjects and improve financing channels and related rules and regulations.As an important part of the Private Equity Fund,Buyout Fund is a common instrument for facilitating corporates' development in western developed countries capital market.One classic pattern is using Leveraged Buyout to gain control power of a company.Since 2011,“the listed companies + PE" type of Buyout Fund starts to gain its popularity in China,which has its overall advantage as the strong combination of financial capital and industrial capital,and is becoming the main type of Overseas Mergers and Acquisitions(M&A)in our country.The year of 2016 is the beginning of the Thirteenth Five-Year Plan,as well as an essential year of economic restructuring and industry transformation and upgrade.As the Supply-side Structural Reform deepening,there has been a huge demand of M&A in stock assets,providing this market bigger opportunity.With the encouragement of government policy,Buyout Fund has a significant influence on Chinese corporates implementing Overseas M&A.Therefore,the impact and performance of Buyout Fund in Overseas M&A should be emphasized.The studies focused on Buyout Fund and Multinational M&A from both domestic and international scholars,especially those for Buyout Funds playing roles in M&A,provided the research foundation for this dissertation.Based on past research,this dissertation analyzed the mechanism of Buyout Fund in the whole M&A activity.First of all it studied the motivation of Buyout Fund participating in Overseas M&A;then it further examined its impact in acquisition stage and integration stage with cases,exploring its path to improving Overseas M&A success rate.Finally,the paper reflected the Buyout Fund' s influence upon company value by using buyout performance.By analyzing two cases,Boying Investment purchasing Steyr Motors and New Bridge Capital purchasing Shenzhen Develop Bank,this dissertation discussed the mechanism of Buyout Fund conducting Overseas M&A,and came to the conclusion that in the acquisition stage,Buyout Fund mainly works on target searching,capital supporting,and trade structure designing;in the integration stage,it mainly works on strategy transforming,administration optimizing,resource efficiency enhancing,and financial performance improving.These functions benefit from the ownership advantages of Buyout Fund itself,including information advantage,management advantage,human resource advantage,and capital advantage.Meanwhile,by analyzing the mechanism,the paper summarized the impact of the participation of Buyout Fund towards companies ' short-and long-term performance.Based on the analysis,the dissertation obtained the enlightenment of characteristics,current problems,and future developments in domestic Buyout Fund in Overseas M&A.