Case Study Of Cross-border Mergers And Acquisitions Between China Tianying And Urbaser

With the rapid development of China's economy and the continuous improvement of the economic market,many enterprises scramble to improve their competitiveness in the wave of development,hoping to stand out with their own unique advantages among many competitors.As one of the ways to enhance the competitiveness quickly,cross-border M&A has been favored by various listed companies in recent years,in order to obtain the advantage in the production,sales and other integrated industrial chain through the strong integration of the two enterprises.But looking at the past cross-border M&A cases,many enterprises in the process of cross-border M&A appear in some problems,so how to choose the merger of the company and how to overcome the merger of one of the series difficulties,which need to be discussed.Taking China Tianying cross-border M&A of Urbaser as an example,this paper introduces the macro economic background,industry status and M&A enterprises of this case,analyzes the causes of cross-border M&A from three aspects of technology acquisition,promotion of popularity and cash acquisition,expounds the fund mode and relevant terms in the process of M&A implementation,and finally compares the performance changes before and after M&A.The main research contents of this paper are as follows: Based on the research literature of domestic and foreign scholars on the causes and performance of M&A,this paper first combs the theory of cross-border M&A motivation and cross-border M&A financing theory,reviews the unique case background of China Tianying cross-border M&A Urbaser,then introduces the main merging party,the merged party and the M&A fund,and combs a series of M&A events during the period,Finally,the paper discusses the motives of M&A,the operation mode of M&A fund and the design of Earn-out clause.Through the discussion of this successful cross-border M&A case,it is found that China's Tianying's move has greatly improved its competitive advantage,and the synergy effect and scale economy effect of the company after M&A are very obvious.China Tianying has achieved industrial upgrading with less funds to leverage the larger amount of M&A,and finally improved the layout in Belt and Road and even the whole world.At last,it points out that choosing the target of M&A suitable for its own development,making good use of M&A funds can enhance the flexibility of M&A,and using Earn-out payment method to reduce the valuation risk caused by information asymmetry,and summarizes the relevant conclusions of the paper,so as to provide reference for listed companies to realize cross-border M&A.