Research On Cross-border M&A Financing Issues Of China's Listed Companies

In recent years,with the "going out" strategy getting proposed and the development of the "Belt and Road" construction,cross-border mergers and acquisitions(M&A)have gradually become one of the best ways for Chinese listed companies to meet their internationalization strategies and overseas high-quality brands and technology introduction needs.And the amount of cross-border M&A transactions is growing,from tens of billions of dollars to billions of dollars,sometimes even reaching the level of tens of billions of dollars,so the integration of M&A funds is a key factor in determining the success of M&A.The arrangement of financing stage is crucial for cross-border M&A.As a prerequisite for the success of M&A,enterprises need to consider their own financial status in the financing stage,considering multiple factors such as the time required for financing,financing costs and the risks that enterprises will face before and after financing.And with the gradual increase in the size of the transaction,a single financing method can no longer meet the funding needs of M&A transactions.How to broaden financing channels,innovative financing methods and achieve diversified financing has become a new issue of concern.This paper first clearly defines the main differences between cross-border M&A and ordinary M&A,especially in the financing process,and then classifies the financing methods available in the cross-border M&A financing process,including traditional and innovative financing methods and lists the basis for choosing different financing methods based on theoretical knowledge related to M&A financing.Then it takes the typical leveraged buyout(LBO)transaction of Company A to acquire Z Company as an example,and introduces the financing arrangement of the A company and the specific basis for selecting the financing methods in the process of the M&A transaction in detail.And focuses on the innovative financing methods used in the financing process,and comprehensively evaluates the advantages and disadvantages of the overall financing plan.Through argumentation,the following conclusions are drawn: the financing arrangement has a significant impact on the success of M&A transactions;diversified financing is conducive to reducing financing costs;the participation of intermediaries can helot M&A transactions go smoothly.The end of the article are several suggestions for the government and the companies intending to conduct cross-border M&A.It is hoped that Chinese enterprises can achieve their goals more smoothly in the process of financing cross-border M&A in the future.