Research On The Financing Mode Selection Of Kerr In Xiwang Food's Overseas M & A

Since the sub-prime mortgages has happened in the United States,many high-quality foreign companies have been adversely affected.This has brought opportunities for corporate mergers and acquisitions.Many Chinese companies have pay attention close to overseas markets,in order to improve corporate value and market competitiveness.More and more Chinese companies have turned their attention to the acquisition of overseas quality companies.However,as a whole,the success rate of overseas mergers and acquisitions is not optimistic,and the overall success rate is less than 30%.The financing market is underdeveloped,the financing tools are too single and there are few sources of financing,which makes it difficult for enterprises to raise funds.Developed countries have no obstacles in M&A financing,mainly due to developed countries' developed financial markets and abundant financial instruments,which make cross-border M&A more standardized and easier.However,there are many restrictions on cross-border M&A financing in China.It is difficult for us to change the existing legal environment and financial system in short time.The only thing we can do is to draw lessons from successful experience of mergers and acquisitions of foreign companies,combine with China's national conditions to innovate.Use innovative financing methods to provide legal financing for overseas M&A activities within the existing legal framework.The main case study object in this article is Xiwang Food's overseas merger and acquisition of Kerr,and has discussions in terms of M&A motivation,financing costs,financing risks and financial performance.At the beginning of this article,discussing in detail of relevant concepts of financing methods for cross-border mergers and acquisitions of enterprises,and then research on the characteristics of financing methods with high utilization rate of enterprises.Secondly,analyzing the current status of overseas M&A financing of domestic enterprises,analyzes and evaluates the motivations,financing costs and financing risks of diversified M&A financing methods,and evaluates whether corporate decisions are reasonable.Finally,this article combines the case of Xiwang Food to make adetailed background statement on the two companies,including the background overview and the complete process of financing method selection,summarizing the series of reasons why this case can be successful.Summing up experience and enlightenment,to provide some experiences for companies to implement transnational in the future.After analysis and discussion,this article draw a conclusion: This M&A activity was implemented based on the company's current strategic development requirements.It has a variety of financing methods to achieve the merger and acquisitionwere,including its own Funds,debt financing,bridge loans,leveraged mergers and acquisitions.Not only control their possible risks,but also help companies solve financing problems.