Research On Risk And Prevention Of Enterprise Leveraged Buyout

As the economy becomes more and more global,the economic structure of the capital market becomes more and more important in the financial market.Among them,mergers and acquisitions of enterprises are an important part of the capital market,playing a major role in the capital market,and operating in the economy.In the process,it gradually evolved into a necessary means.Thus,in the 1980 s,leveraged buyouts emerged as the fourth wave of mergers and acquisitions in the world.As an emerging special M&A model,leveraged buyout has become the most popular financial innovation in the US investment industry.Many small and medium-sized enterprises can achieve acquisitions of large-scale enterprises through leveraged buyouts.Feat.Leveraged buyouts are based on less self-owned funds,use financial leverage to increase debt ratios,and use debt capital as the main financing tool for acquisition restructuring.The choice of financing structure and financing tools is diversified.At the same time,due to the use of higher financial leverage,it also faces various risks such as financing,finance,and integration after mergers and acquisitions.In recent years,with the gradual opening up of China's capital market and the improvement of policies,Chinese enterprises have gradually introduced the emerging mode of operation of leveraged buyouts,and have gradually developed in the domestic market in recent years,becoming a hot issue of national interest,such as Geely's acquisition.Volvo,Changjiang Electronics acquired Star Branch Jinpeng and so on.Starting from the concept and characteristics of leveraged buyout,this paper analyzes and summarizes the financing structure theory of previous studies,and introduces the general operating procedures and application process of leveraged buyout.Based on the theoretical basis,the paper analyzes the typical cases of Ninestar's acquisition of LXK,and studies its financing structure,financing path,performance comparison before and after the acquisition,the risks faced,and the specific analysis of Nashida's countermeasures against risks.Successful experience and inspiration from it,and make some suggestions for future leveraged buyouts.