Research On The Strategy And Financial Risk Of Leveraged Buyout In Chinese Enterprises Overseas Mergers And Acquisitions

Under the background of economic globalization,the enterprise acquisition activity increase gradually.Transnational mergers and acquisitions have become one of the main ways for Chinese enterprises to develop rapidly,and also become one of the main ways for Chinese enterprises to go abroad and explore the international market.However,in the process of transnational mergers and acquisitions,the need to raise a large amount of money is a big problem,and leveraged mergers and acquisitions can solve this problem.However,the cross border leveraged buyout in China started late.The strategy of LBO is not yet mature enough,and it may face multiple risks in cross-border leveraged buyout,which will affect the effectiveness of cross-border leveraged buyout.In order to study the strategy of LBO and financial risk prevention,this paper takes the case of APex leveraged buyout of Lexmark as the research object based on the theory of the MM theory and capital structure theory and discusses the key points of the implementation of the leveraged buyout and the financial risk which APex may face during the process.This paper found that: Firstly,the use of reasonable transaction structure design and financing strategy in leveraged buyout is the key factor for the successful implementation of leveraged buyout.The successful financing strategy should take into account the feasibility of the choice of the financing mode of the enterprise,with the aid of diversified channels and financial innovation as far as possible.Secondly,enterprises may face great financial risk during the process and need to take some risk prevention measures to reduce financial risk.