A Study On The Ways And Risks Of Leveraged Acquisition

After the global economy in 2008 after the subprime mortgage crisis,in recent years also step by step to recovery.With the passage of time,the pace of global economic recovery has entered a slowdown.However,the global capital market on the major mergers and acquisitions have been carried out in full swing.According to statistics,China's capital market in 2015 the amount of mergers and acquisitions reached 4 trillion yuan,and is expected in the next 20 years,the cumulative total amount can exceed the level of one trillion.In this case,China has actually entered the capital market boom period,while China's corporate mergers and acquisitions market also ushered in the flourishing period.With the development of capital markets and the prosperity of the acquisition market in the high risk of the temptation also hidden a lot of risk,because China's capital market development started late,for a lot of risk research has yet to be improved.Leveraged acquisition is not a new way of financing,but often in business contacts,but are more single.This kind of investment leveraged by financial leverage is often a huge temptation to the enterprise but also accompanied by the risk of having to be considered.In theory,the essence of leveraged finance is the use of financial leverage,so it involves financial risks.Financial risk is usually the most obvious in leveraged buyout projects,and the acquisition of projects due to leveraged instruments,especially for large listed companies,is generally very demanding on the amount of money,so the financing channels and financing Often hidden in a huge financial risk.In addition,the immature Chinese financial market will have financial market risk,this risk may lead to China's financial market,a large number of junk bonds,which triggered a financial crisis.And because of the leveraged buyout which may bring the market financial risks,few domestic research.December 20,2015,the acquisition of Vanke shares leveraged Vanke stake in the issue of the public caused great concern for the M & A market,in particular,the Group for the use of leveraged funds textbooks triggered a large number of market interpretation.Because of its large volume,the leverage structure is complex,its financing risk is also of great significance,for example,Bao Neng Group to insurance funds as an important financing tools and channels,this alternativeleveraged funds and other risks.This study mainly takes the event as a case,from the actual case,a profound analysis of leveraged buyout financing of Chinese enterprises,financial markets,the acquisition of the enormous impact and risk.At the same time,according to these risks to give the appropriate measures to avoid or recommendations.