Analysis On Financing And Performance Of Cross-border Mergers

Since China's accession to WTO in 2000,the openness of China's economy has increased year by year.In 2015,IMF officially announced that RMB access to SDR.It is another milestone of China's opening.In the process of opening the country,more and more domestic enterprises are going out of the country.They will absorb the advanced technology and advanced management experience of foreign enterprises by the way of cross-border mergers and acquisitions.Then Chinese enterprises may establish the brand and influence in the world wild market.The number of cross-border M & A cases is increasing rapidly,but the failure rate is still high.Through previous summaries and case studies,it is found that improper financing decisions may cause the failure.In this case,it is imperative to analyze the financing decisions of cross-border mergers and acquisitions.In 2016 the acquisition of Lexmark's case.The financing process of Apex is so good.It created a new case record in 2016 China mergers and acquisitions of overseas enterprises,becoming the China corporate leverage merger cases in the benchmark.so the case is typical.At the same time,the case that Apex acquisition of Lexmark has many new characteristics: the enormous amount of the transaction,facing antitrust review and the trade structure adjustment makes the deal more complex.because the use of innovative financing arrangements-Exchangeable Bond,this mode of financing has more skill.Therefore,this paper analyzes the relationship between cross-border M & A financing and performance through this case.Based on the successful case acquisition of Lexmark financing decision.This paper's primary purpose is to find out through cross-border mergers and acquisitions whether it is significantly to enhance the performance effetely in the process of debt financing.Through the typical case,the Pecking Order Theory in cross-border mergers and acquisitions is in the effectiveness.Secondly summarize the successful experience of the typical case.So that it can be referenced by similar enterprises in cross-border mergers and acquisitions rules.This paper mainly analyzes the motivation,financing and performance risk in prevent and time.In the process of case analysis,we use Event model to conduct a simple empirical study of financing methods and performance.Lastly,we find out the relationship between financing and business performance in cross-border mergers and acquisitions.The article is divided into five parts.The first part is the introduction,which analyzes the background of the study and the research results of other professors.The second part is the analysis of the financing on the merging market.Through the analysis of the common financing tools in the market,the advantages and disadvantages and the risk points are understood.The third part is about the Apex and Lexmark both basic information and the process of mergers and acquisitions.This part paved the way for the case analysis.The fourth part is the in-depth analysis of the case of mergers and acquisitions.Based on previous studies,from the motivation,performance,financing,financing risk analysis the acquisition of Lexmark.It is not only the effectiveness of event law debt financing to enhance corporate performance in typical cases,but also a practical reference for future overseas mergers and acquisitions in the process of in-depth analysis of this classic case.The fifth part is the conclusion of the previous study and the summary of disadvantage in this analyst.At the same time,the article provides some ideas for the future improvement.The results of empirical and case analysis show that mergers and acquisitions have a positive impact on corporate performance in the process of cross-border mergers and acquisitions,and debt financing has greatly enhanced the performance of mergers and acquisitions.Based on the case analysis of Lexmark mergers and acquisitions Apex discovery process of transnational merger financing complex,influence factors.First,we should analyze the amount of funds from the valuation of the M & A,and determine how to pay for the financing from the demand of the funds.In the process of making financing plans,we should consider the amount of financing,the cost of financing and the risk of paying debts afterwards.So it can ensure that you can finance the full amount of money at the lowest cost,and avoid financial risks after the merger is completed.Based on the case about the acquisition of Lexmark,the paper discovered the effectiveness of Pecking Oder Theory in domestic enterprises' overseas mergers and acquisitions.Debt financing in the leveraged buyout in low cost and tax effect is the ideal financing tool in the process of transnational mergers and acquisitions.By the way through the process of in-depth analysis of financing mergers and acquisitions of Lexmark.Any other transnational merger financing can reference it.