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Xiwang Food "Snake Swallow" Style Overseas M&A Case Study

Posted on:2019-03-06Degree:MasterType:Thesis
Country:ChinaCandidate:K ZhangFull Text:PDF
GTID:2439330572995674Subject:Accounting
Abstract/Summary:PDF Full Text Request
In 2016,the overseas mergers and acquisitions of Chinese enterprises showed a "spurt-type" growth,and private enterprises overtook state-owned enterprises and became the dominant players in the overseas M&A market.However,financing difficulties are a difficult problem for private enterprises over the years,especially when conducting overseas mergers and acquisitions,the difficulty of financing is more significant.Under the circumstance of the enthusiasm of private enterprises in overseas mergers and acquisitions,research on the financing of private enterprises is extremely urgent.In the case study of overseas mergers and acquisitions of private enterprises,it is not difficult to find that there are often successful cases of domestic private enterprises acquiring large overseas companies.In this kind of "snake swallow" type of mergers and acquisitions,the financing difficulties faced by private enterprises can be imagined.Therefore,the analysis of such successful cases will be of great significance for studying the difficulty of financing private enterprises.This paper selects a typical overseas "snake swallow" type of mergers and acquisitions-Xiwang Food mergers and acquisitions Kerr as the research object,through the literature analysis method to collate and summarize the relevant research done by the academic community;use case analysis method to Xiwang Food mergers and acquisitions Kerr is analyzed in detail.The main part of the case analysis analyzes the financing methods in the whole process of mergers and acquisitions,and conducts a further study on the financing methods of M&A from the aspects of financing effect and financing risk.Among them,the financing effect of M&A is analyzed from the two aspects of financing efficiency and short-term market reaction.The methods used are data envelopment analysis and event research method;The analysis of financing risk is based on the characteristics of the financing method itself,combined with relevant theories,to analyze the hidden risks of the financing methods used by Xiwang Food.It is concluded that:first,well-operated targets can help improve financing efficiency in M&A activities;second,flexible use of leverage plus multiple financing methods can help improve financing efficiency;third,multi-funding methods can reduce mergers and acquisitions High financing risk due to high leverage in the process of financing.Finally,based on the conclusions,this paper draws three inspirations:First,high-leverage overseas acquisitions should focus on the choice of target companies,which should be consistent with the strategic development of enterprises;second,enterprises should rationally plan financing arrangements,actively expand financing channels,and innovate.Financing methods,making full use of overseas funds for overseas acquisitions;Third,the state should accelerate financial reforms,strengthen the guidance of innovative M&A financing,and help private enterprises make better use of innovative financing methods.
Keywords/Search Tags:private enterprise, mergers and acquisitions, financing, financing effect, financing risk
PDF Full Text Request
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