Investigation On Oversea Mergers And Acquisition Financing Mode Of China Manufacturing

Manufacturing is the largest and most active foreign investment in our country in the last few years,and Engineering machinery manufacturing and equipment manufacturing,the backbone of the manufacturing industry,are important parts of Chinese national economy.However,it has been greatly influenced by domestic macro-control and economic growth.with the aggravating of intratype competition and the atrophy of domestic market,the development space of Engineering machinery manufacturing and equipment manufacturing in the country.So it is urgent to have the strategy of "Going out" to have more possibility of development and set down in the global market during the transformation and upgrading process.In many corporate development models,the cost of overseas mergers and acquisitions is even lower.Overseas acquisitions acquire intangible assets such as technical resources and sales channels,avoid trade barriers to expand overseas markets,and can quickly realize the growth of enterprises.This is particularly applicable to the construction machinery industry.A technology-intensive,capital-intensive industry.The overseas mergers and acquisitions require the characteristics of raising large amounts of funds in the short term.How to rationalize the mergers and acquisitions transactions and smooth financing is the basis and prerequisite of overseas mergers and acquisitions.In contrast,the overseas environment and the performance of M&A financing of Chinese companies' overseas mergers and acquisitions has the drawback as below: the low level of development of the capital market,the lagging development of policies and regulations,the narrow financing channels,and the lack of innovation in the outdated financing model,which directly hinder the internationalization of Chinese enterprises.Therefore,the key part of this paper to explore a financing model that suits the actual situation of Chinese manufacturing enterprises on the basis of the special corporate governance structure and institutional environment of Chinese enterprises and guide the practice of our manufacturing industry overseas mergers by combining with the classic financing structure theory.This paper applies case analysis and comparative analysis to focus on the research of the merger and financing model arrangement of the engineering machinery industry in Chinese manufacturing industry.Based on the theory of M&A financing structure,the current M&A environment,M&A characteristics and M&A financing status of Chinese manufacturing industry are refined and analyzed.Through the comparative analysis of M&A financing models on Lenovo,Lovol Heavy Industries and Geely,which are three secondary companies in the manufacturing industry to summarize the characteristics and existing problems in the current financing model of Chinese manufacturing M&As.Then,based on these characteristics and issues,taking Zoomlion's merger and acquisition of CIFA as a central case,merger and acquisition motives and financing preparations,analyzing merger and acquisition motives and financing preparations and their transaction structure design,financing model arrangement one by one,and elaborating the various financing cases and their role in the financing arrangement ofthe M&A involved in the case in detail.Then it analyzes the significance of Zoomlion's adoption of these financing methods for the overseas M&A financing in terms of financing structure,financing channels,and financing financial risks and how this financing model arrangement will affect the company's financial performance in the future.After comparing the case studies of Zoomlion with its industry counterparts,Sany Heavy Industry and Liugong's overseas M&A financing model arrangement,it analyzes from financing structure,financing channels,financing financial risk aspects and reasons of the financing model to be chose.Based on the above analysis of the status quo of Chinese manufacturing overseas M&A financing andthe summary of Zoomlion's financing model,this paper finds that under the current economic situation,the continuous development of financial intermediaries,private equity funds and other non-bank intermediaries have participated.Chinese manufacturing overseas M&A financing is of great significance.Inspired by Zoomlion's overseas M&A financing case and various comparative case financing model arrangements,this article is based on the characteristics of Chinese construction machinery industry and the status quo of Chinese manufacturing overseas M&A financing,combined with M&A financing structure theory,based on the classification of Qingmu Changyan's financing model and according to the characteristics of different companies in the industry,a selection model of M&A financing model has been established,which includes equity-oriented financing model,debt-oriented financing model,and inward financing-oriented financing model,so that companies can choose the appropriate financing formergers and acquisitions according to their own situation.In addition to the model of corporate financing model selection,the article concludes with three proposals from the perspective of improving corporate financing capabilities: Accelerating corporate transformation and upgrading to enhance internal financing capabilities;strengthening cooperation with financial intermediaries;expanding ideas and broadening financing channels.This paper combines the characteristics of different companies in the construction machinery industry,and formulates three selection model of the choice of financing model through the theory and practice of case studies,which has a reference value for M&A activities of different types of manufacturing enterprises in the future.