Case Study On Cross-border M&A Of The Bluesail Medical With Biosensors International Leading Of CITICPE

With the development of Chinese economy and the call of the national policy of the Silk Road and the Belt and the Road,overseas investment gradually becomes main force of the capital market.Therefore,the enthusiasm of cross-border mergers and acquisitions increases with each passing day.But cross-border M&A still faces many difficulties and puzzles because of the imperfection of rules in the capital market.So,it is a research which deserved serious consideration how to improve the cross-border and boost the success rate.Using the method of case study,the paper makes the research about cross-border M&A of public companies and buyout funds.Based on the introduction about the case of cross-border mergers and acquisitions cases of the Bluesail Medical leading of CITICPE,four aspects which including buyout fund operation mode,leveraged buyout mode,performance commitment and financial indices were analyzed Firstly,rational cross-border merger and acquisition designing mode is the foundation of cross-border mergers and acquisitions.This is,the corporation of listed companies and buyout funds will overcome the limitations of payment means and regional differences,and reduce the risks of financial and legal by making full use of the experience and resources of M & A fund.Secondly,buyout funds can increase the economic leverage in order to obtain large loans and off-load debt risk by using credit spreads of the assets base on the plentiful free cash flow and low debt ratio.Rational using debt leverage is the core about severe money problems in the M & A.Finally,it would be very advantageous to decrease financial pressure by differential pricing,reduce the risk of cash flow and debt and promote the crossborder M&A.So,it is a favorable instrument for our companies in expanding overseas.The results of the study show that the operation mode which is highly reproducible and provides a reference for Chinese listed companies to achieve cross-border mergers and acquisitions successfully of using M & A fund privatizes underlying,then transfers the risk by credit spreads of the assets and complete on the stock market in A-share.