Shuanghui International Leveraged Acquisition Of Smithfield Case Study

In recent years,China's capital market has become increasingly active,and mergers and acquisitions among companies have also been blowouts.According to the PricewaterhouseCoopers 2017 M&A Report for the Chinese Enterprise Market,the total amount of Chinese M&A in 2017 reached US$671 billion.In the process of mergers and acquisitions,companies often need a lot of money,and relying solely on the company's own funds is often difficult to complete a huge acquisition.As a new type of financing method,leveraged buyout solves the problem of capital sources in the process of mergers and acquisitions,and at the same time greatly saves the company's capital costs.It plays an increasingly important role in the process of mergers and acquisitions of companies and gets a lot of concerns.This article first introduced the background of the topic,pointed out the significance of the current LBO research,and combed the research status of LBO at home and abroad.The second part elaborates the related theories of leveraged buyouts,highlights the financing methods of leveraged buyouts and how to choose the financing structure.The third section briefly introduces the background of the parties to the acquisition and the reasons for the acquisition and the acquisition plan.In the fourth part,the case was analyzed in detail,from the requirements of the acquisition of funds,the choice of financing instruments and the risks in the acquisition,etc.to the effect of the completion of the acquisition.Finally,based on the analysis of this case,it is pointed out that in the LBO process,companies should scientifically select financing methods,be vigilant against financing risks,and reasonably select intermediaries.Through the analysis of this case,it is hoped that it can provide a reference for the future cross-national acquisition of Chinese enterprises.