Research On Financing Of Transnational Mergers And Acquisitions Of Private Enterprises

With the rapid development of China's economy,more and more Chinese enterprises are moving towards the international market in the tide of globalization.At present,transnational mergers and acquisitions have become a shortcut for many domestic enterprises to grow steadily and adjust their structure.Private enterprises,relying on their own unique corporate advantages,stand out in cross-border M&A and gradually occupy the dominant position.Therefore,M&A financing has become the primary issue for private enterprises to consider in cross-border M&A.However,private enterprises,especially small and medium-sized private enterprises,have been constrained by financing difficulties,and cross-border M&A financing has greater requirements for the financing ability of enterprises.Although in recent years,the relevant government departments have been increasing their financial support to private enterprises,such as the launch of small and medium-sized boards and growth enterprise boards,the construction of free trade zones,to some extent,alleviating the financing pressure of private enterprises,but the complexity and particularity of cross-border M&A financing makes the financing problem of private enterprises still very prominent in cross-border M&A.If the financing arrangements are not appropriate,not only does it alleviate the financing pressure of private enterprises.It will increase the debt pressure of enterprises and bring serious harm to the long-term development of enterprises.Therefore,choosing appropriate financing methods and strategies to make full use of the synergistic effect of funds is the core issue that private enterprises need to pay attention to in transnational mergers and acquisitions.Based on the relevant concepts and theoretical foundations of private enterprise financing,this paper analyses the uniqueness of M&A financing and financing channels and ways of private enterprises in China,and expounds and studies the factors affecting financing from the aspects of financing costs,financing risks,payment methods and financing environment.On this basis,this paper reveals the current situation of cross-border M&A financing of private enterprises in China,as well as the problems such as single payment mode,narrow financing channels,limited role of investment banks and low utilization of intermediary structure.Combining with case analysis,this paperanalyses the financing arrangement of Epick's M&A of American Legend International,draws inspiration from the expansion of financing channels,the innovation of financing modes and the prevention of financing risks,and puts forward the suggestion of making full use of domestic and foreign financial markets to broaden financing channels and financing in M&A from the micro and macro aspects of enterprises.Emphasis should be placed on the role of intermediary structure,strategic alliances of joint venture investors and banks to disperse financing risks,and suggestions to improve the M&A financing services of financial institutions,which will provide some theoretical guidance for the M&A financing of private enterprises in China.