Case Study On The Choice Of Cross-border M&A Financing Methods For Listed Companies

Since the trend of reform and opening up has engulfed China for 20 years,globalization and integration have become the development trend of the world economy.Domestic enterprises go abroad to merge or acquire foreign enterprises,has become an irresistible trend in the development of economy.China's cross-border mergers and acquisitions have experienced a huge change,starting from scratch.More and more domestic enterprises has chosen cross-border mergers and acquisitions to increase their occupation ratio in the and their competitiveness international market,so it is of great significance to choose financing methods for cross-border mergers and acquisitions,which largely determines the speed and quality of the process of mergers and acquisitions.First of all,the thesis has summarized the financing types of mergers and acquisitions,as well as the classification and characteristics of various financing methods,and discussed the influence of various factors on the choice of financing methods,such as the motivation of mergers and acquisitions,the financing amount of mergers and acquisitions,the capital structure of the acquirer,and the financing risks of mergers and acquisitions and so on,and comprehensively measured various influencing factors to determine an optimal financing method.Based on six recent typical cases of cross-border mergers and acquisitions to conduct a comparative analysis,the thesis has argued that different financing methods have different impacts on financial conditions.In the pursuit of the lowest financing cost,the least financial risk,and the highest merger and acquisition performance,enterprises should learn from the experience and lessons of previous cases of mergers and acquisitions,make full use of financial intermediaries to plan financing schemes,cite private equity to avoid risks,use exchangeable credits to make up for the financing gap,and improve financing capacity.The research results of the thesis has showed that Chinese enterprises should choose the financing methods which suitable for the current financial environment with low cost,low risk and high efficiency according to the actual situation of themselves and the target enterprises,in order to avoid risks and obstacles in the process of mergers and acquisitions.The results in the thesis has provided reference for Chinese enterprises in the future when they choose financing methods of cross-border mergers and acquisitions.