A Case Study On The Financing Method Of Apex Merging Lexmark

In recent years,some national macro strategy,such as China's strategy Go Out policy,The Belt and Road initiative,the supply-side structural reform and so on,have positive impact on overseas M&A.Since 2016,private enterprises in China have replaced central enterprises and state-owned enterprises as the main participants in overseas M&A.The main obstacles for private enterprises to implement overseas M&A come from 2 sources: capital and professionality.With the improvement of China's capital market opening-up,overseas M&A have emerged such as Private Equity company's participation,controlling shareholder issuing exchangeable bonds and other innovative financing initiatives.To some extent,these financing methods have broken through the financing constraints of private enterprises.However,there are potential financial risks,conflicts of interest and integration problems,which need further research and discussion.In this paper,I choose the case of Apex merging NYSE listed company Lexmark International Ltd.as the research object and conduct an in-depth discussion on private enterprise financing constraints and M&A financing method.Firstly,this paper discusses the theory basis of M&A financing and summarizes domestic and abroad articles about financing constrains,financing method and financing risk.And then simply introduces the research contents,research methods and framework of this paper.Secondly,the paper introduce the background industry and financing environment,then introduce basic information of the Apex,Lexmark,joint investors,finally a detailed description of the whole transaction process and results.Thirdly,analyzing factors of Apex's financial aspects,non-financial aspects and specific transaction characteristics.And then analyze how Apex's diversified financing scheme break through existing financing constraints and to identify the financing advantages and financial risks.In the end of this chapter,calculating weighted average financing cost and comparing it with other comparable financing case.Finally,summarize the innovation of the financing method in this case,put forward revelation of private enterprises financing,and how government construct an innovative environment of M&A financing.