A Case Study On Financing Methods Of Apex Merging Lexmark

With the continuous development of the domestic economic and economic globalization,economic pressures such as overcapacity and weighing on RMB in the domestic market begin to appear,competition between domestic enterprises is becoming more and more intense.More and more companies are beginning to implement cross-border mergers and acquisitions in order to enhance their competitiveness.Transnational M&A are both an opportunity and a challenge for domestic companies.According to the Wind M&A database in 2016,the number of M&A cases of transnational corporations increased by 181%,but the failure rate of M&A cases of transnational corporations was as high as 60%.Despite the rapid growth in the M&A cases,the failure rate has always been at a high level.The failure of financing decision is an important cause,thus the research about transnational M&A financing decision has a strong practical significance and necessity.The acquisition of lexmark international as the most sensational merger in 2016 is very representative,so this paper chooses this case to study.This paper firstly introduces the background of the topic,the current situation of domestic and foreign research,and summarizes the relevant theories of cross-border m&a financing.Then the background,the process and the cause of the merger and acquisition are discussed and analyzed.After that,this article analyzes Apex's financing methods in depth,it was concluded that Apex adopted a variety of innovative financing methods,which reduced the cost of financing and raised the financing efficiency in the short term,but it also has some problems,such as unreasonable financing structure,large repayment pressure,decline in operating performance,exposure to exchange rate risks;Finally,in view of the problems existing in the financing of Apex Mergers and Acquisitions,this article puts forward some suggestions and proposes other financing methods,such as attracting government investment,trust financing and seller financing.Through the analysis of the M&A case,it is found that M&A financing decisions are the key to the successful implementation of cross-border M&A,and will also have a profound impact on the company's follow-up operations.In the context of high failure rates of cross-border M&A,it is necessary to scientifically select appropriate financing methods,this paper aims to provide reference for Chinese companies.