Structured Mergers And Acquisitions Fund Case Study

After 2014,the national has entered the economy new normal,and policies have been issued to encourage public companies to use mergers and acquisitions funds for M&A.In general,mergers and acquisitions funds will set up structured arrangements to facilitate fund raising and meet the risk preferences of different investors.Structured mergers and acquisitions funds has excessive leverage and high risk.So,under the background of strong regulatory and financial deleveraging,in order to prevent the leveraged finance risk,the CSRC continuously enact policies in lastest two years for structured mergers and acquisitions of fund.It gradually improve information disclosure requirements,and makes a require in the priority investment,capital preservation guaranteed income,etc.In this case,Gosuncn Technology Group Co.Ltd,began to acquire ZTE IoT Technology Co.ltd,in June 2016.After two reviews,this case was successfully passed review on December 25,2017.In the first review of the CSRC,problems such as imperfect information disclosure and promises of performance disclosure have been exposed,which are representative and worthy of further study.This paper takes structured mergers and acquisitions fund as the research object,and adopts literature research method and case study method to analyzes the compliance of structured mergers and acquisitions fund,finally obtains the influence on M&A and puts forward suggestions.This paper first introduces the research background and purpose,research significance,domestic and foreign research situation and paper framework.Secondly,it introduces the motive and main content of the acquisition.Then the paper analysis this case structured compliance problem of structured mergers and acquisitions funds and its influence from the information disclosure,priority investment proportion,the guaranteed capital and insured income arrangement,and the influence of structured mergers and acquisitions fund on the financing scale,financial status,stock market and ownership structure of listed high-tech co.Through analysis,it is concluded that although the introduction of structured mergers and acquisitions funds by public companies can alleviate the internal and external financing pressure and improve the financial situation,the equity structure may be affected after the completion ofthe transaction.Finally,it is suggested that the regulatory authorities should strengthen supervision,improve the legal system and optimize the bond market;public companies broaden financing channels,reasonable choice of mergers and acquisitions fund mode.According to the current new rules of asset management,mergers and acquisitions funds are required to build structured mergers and acquisitions fund,strengthen their own business capabilities,and expand financing channels.