Research On The Financing Tactics Of China's Private Enterprises' Transnational Mergers And Acquisitions

In recent years,China's private enterprises have faced severe tests in the process of transformation and upgrading.Private enterprises have always faced relatively serious financing constraints.This problem has also become an important bottleneck restricting the internationalization of China's private enterprises.How to crack the financing constraints that restrict the development of private enterprises,especially the internationalization process,has become an important issue before us.This paper takes Lexmark,a privately-listed company in Zhuhai,to acquire Lexmark in the United States as a case study,and conducts in-depth research on its financing strategy.The financing strategy for this case is the introduction of private equity funds,the design of multiple transaction structures,the innovative use of financial instruments,the involvement of multiple financial institutions,and the purchase and splitting of assets.However,the excessive cash purchase ratio puts certain financial risks on the acquisition side.Therefore,in the process of mergers and acquisitions,private enterprises should consider the “mixed ratio” payment method in a timely manner in combination with their own cash payment amount,total share capital,stock price,business development,and operating cash flow.This paper believes that in the management level of private enterprises,it should implement active and effective financial risk management in cross-border financing mergers and acquisitions,strive for the support of international syndicated loans and establish a “strategic alliance” to expand financing channels;in the market improvement level,commercial banks should be fully utilized.The role of “compensation” to further improve the construction of the SME bond market system and continuously optimize the operating environment of the capital market;at the level of government macro-control and management,we should build a mature M&A financing judicial system,formulate dynamic industrial policies for cross-border M&A and strengthen “Cross-border M&A + ”network technology supervision,thus providing a solid policy guarantee for improving the cross-border M&A financing of private enterprises.