Research On Financing Strategy Of J Automobile Company's Cross-border M&A

In 2016,the overseas M&A of Chinese enterprises set a new record,but after the government introduced the new policy of overseas investment in 2017,the overseas M&A declined sharply year on year.One reason is that the new foreign exchange control and foreign investment auditing standards restrict speculative overseas M&A of non-main business or pure finance.On the other hand,Chinese enterprises have found in their "going out" attempts over the past decade that a large proportion of previous relatively blind "scavenging" overseas M&A fails to achieve the expected strategic and economic objectives.Therefore,many enterprises have begun to rethink and attach importance to strategic investment,formulate more precise international investment strategy,and select investment objectives more patiently.It is the core step for the success of cross-border M&A to construct M&A financing mode with international investment vision and investment strategic purpose.In view of the above research background,this paper combines the case of J Company M&A D Company to analyze the financing strategy of cross-border M&A in China,and puts forward the optimal financing strategy and financing risk control measures for crossborder M&A,which not only supplements the research on financing methods of cross-border M&A in domestic enterprises,but also has certain theoretical significance,and can provide for enterprises that implement cross-border M&A in the future.It has more practical significance to draw lessons from experience.Firstly,the paper expounds the theoretical basis of cross-border M&A financing,including cross-border M&A financing theory,cross-border M&A motivation theory,cross-border M&A financing methods,financial derivatives and related options trading strategy theory;secondly,it introduces in detail the current development trend of cross-border M&A in the automotive industry and the main factors affecting cross-border M&A;secondly,through the study of J Company M&A D Company.The case analyses in detail the motivation of J company's cross-border M&A,the current financing steps and problems of J company's cross-border M&A.Finally,the paper puts forward the optimal financing strategy of J company's cross-border M&A,and establishes the risk prevention and control measures of J company's cross-border M&A financing.