Research On The Financing Mode Of Cross-border M&A

The world economy has been growing slowly in recent years.However,the economy has developed rapidly in China.When cross-border M&A are going well,we should notice that the success rate of cross-border M&A has not always been high.The reason is that the cross-border M&A transaction requires huge financial support.Financing is a crucial step in a merger.In addition,the success of cross-border M&A is linked to financing.Different financing methods will also have different effects on the transaction cost and later returns.How to select the optimal financing mode from numerous M&A financing methods is an urgent problem.This paper's first part introduces the research background,significance and proposes the research method and the research content.The second part summarizes the basic concepts of cross-border M&A financing,related theories and financing methods.By studying the domestic and foreign literatures,it is found that the financing mode of cross-border M&A can be continued to improve.These lay a theoretical foundation.By sorting out the cross-border M&A financing process,the factors that affect the selection of financing methods are summarized,such as the financing amount.The third part points out that the development of cross-border M&A in China is quite well,but the success rate is not high.What's more,the paper analyzes the current situation of financing mode,and points out that there are some serious problems such as limited funds and low degree of dependence of Chinese Banks etc.The fifth part makes an in-depth analysis of the financing program which adopted by APEXMIC when it merges Lexmark.The financing scheme has achieved some results.For example,private equity is introduced and financing consortia are formed and so on.However,there are some deficiencies: the financing method and the financing structure are unreasonable.Finally,according to the case study,puts forward the problems of the current situation of the above suggestions.The enterprise can strengthen internal financing ability,through the use of the internal market and effective use of financial leverage multiple approach of improving the utilization efficiency of bank loans,solve the problems that exist in the cross-border M&A financing.