Research On Application Of “Listed Company+PE” Buyout Funds

M&A is an important way for the expansion of listed companies.With the increasing interdependence of the economies of various countries in the world,it has become a new trend to acquire resources through overseas M&As.In recent years,with the proposal of the “One Belt and One Road” initiative,the Chinese government has gradually relaxed the supervision of overseas investment.Under this favorable policy background,Chinese companies' enthusiasm for overseas investment continued to rise,and “going out” became a strategic upsurge for domestic companies.In overseas cross-border M&As,financing difficulties have always been a major problem.Due to that overseas parties generally have a low willingness to hold A-shares.Therefore,when domestic listed companies conduct cross-border acquisitions,they often can only pay by cash.Most listed companies with cross-border merger and acquisition needs,especially private listed companies,usually do not have sufficient cash flow to complete cross-border transactions in the short term.The introduction of "listed company + PE" type M&A funds will help enterprises solve the financing difficulties in cross-border M&A transactions.This article uses the case of domestic listed company Ipake to introduce cross-border M&A funds to acquire Lexmark,an American company,to explore the advantages and risks of listed company M&A funds.It provides a basis for regulating the development of "listed company + PE" type merger and acquisition fund and expanding its application in cross-border M&A of listed companies.In this case,the M&A fund has carried out a series of clever designs.Such as the use of multi-level mainframe nested financing to enlarge the leverage,"anti-triangle" type absorption and merger isolation risk,the introduction of innovative financing tools,etc.The clever design of the M&A fund helped the company to solve the financing problem,enabled the M&A transaction to be implemented smoothly,and had a certain reference for solving the problem of financing the cross-border M&A of listed companies in China.At the same time,this article also summarizes the deficiencies of the current listed company's M&A fund based on the case,and puts forward specific suggestions for regulating its development.