Research On The Application Of M&A Funds In The M&A Financing Of Listed Companies In My Country

M&A is one of the important ways for listed companies to achieve strategic development.The capital operation process involves a large amount of capital transactions.For mergers and acquisitions,the implementation of different financing methods is not the same.The issues related to financing scale,financing cost,financing efficiency and smooth financing channels will have an important impact on the M&A results.As an innovative M&A financing method,compared with previous endogenous financing,debt financing or equity financing,M&A funds have a comparative advantage in terms of financing scale,financing efficiency and financing risk.For large-scale mergers and acquisitions,M&A funds can well solve the capital pressure of mergers and acquisitions,and at the same time quickly raise funds and improve the efficiency of mergers and acquisitions.Therefore,in recent years,with the vigorous development of China's M&A activities,many listed companies will acquire M&A.The fund is used in M&A transactions.This article takes the listed company Sunbird to acquire Yaguang Electronics as an example to explore the role and advantages of M&A funds in M&A financing.Based on strategic transformation,timing of bidding and the demand for funds,Sunbird set up a merger and acquisition fund by a number of private equity funds,and quickly raised a large amount of funds in the short-term.After successfully bidding for the company,it passed the “debt-to-equity swap”.The transaction structure of the “debt” was injected into the listed company after the share exchange transaction with the listed company.In the process of mergers and acquisitions,the use of M&A funds is reasonable,and the transaction structure is designed ingeniously,which ultimately reduces financing pressure,stabilizes the company's control rights,and reduces the impact on stock prices,enabling listed companies to successfully achieve strategic transformation and embark on the path of healthy development of dual main businesses.Through the study of the case,this paper finds that listed companies take the lead in co-financing with private equity institutions,and the funds raised by the M&A funds are used in leveraged buyouts to realize the formal innovation of financing,which is conducive to broadening the financing channels of listed companies.Enterprises' M&A financing opens up a new perspective and provides reference for subsequent financing of M&A transactions of listed companies.