Research On Financing Strategy Of Acquisition Of Kerr By Xiwang Food

Since the 1980 s,the world has set off a wave of cross-border M & A,Chinese enterprises have gradually realized the importance of overseas markets,overseas M & A market came into being.Overseas M & A can not only effectively and quickly open up the foreign market,but also can obtain the quality resources that enterprises do not have,improve their own competitiveness,which has a great appeal to Chinese enterprises.From the beginning of the21 st century,the overseas M & A of Chinese enterprises is in the embryonic stage of exploration,and gradually formed a set of its own M & A model by 2015,and the number of M& A blowout growth.In recent years,as more and more overseas acquisitions fail.The emergence of cases,enterprises in overseas mergers and acquisitions tend to be rational,will pay more attention to the formulation of financing strategies.Compared with domestic M & A,overseas M & A requires more funds and has more risks.Whether or not to get the funds needed for M & A and repay them on time becomes the key to successful M & A.Private enterprises are more difficult to finance than state-owned enterprises,in this case,according to their own financial situation and capital structure to formulate reasonable M & A financing strategy is particularly important.Based on the research process Kerr Western Wang Food M & A,this paper analyzes the motivation and strategy of financing strategy formulation.It is of practical significance to evaluate the rationality of the financing strategy and find out what other enterprises can learn from the case.This paper first introduces the research background and significance of the case,and summarizes the relevant literature and basic theories.Secondly,this paper introduces the Kerr cases of Xiwang Food M & A,including the enterprise information and capital structure of both parties,and describes the process of M & A financing in detail.The combination of a variety of financing instruments in the merger and acquisition of Western King Food,private equity financing,debt financing,internal and external loans,targeted issuance and profit payment plans,Arrange the term of assets and liabilities reasonably and realize the closed loop of funds.After that,combined with the case itself,this paper analyzes the rationality of M & A financing strategy from four angles:motivation,advantage,risk and cost.Xiwang Food chooses the appropriate payment method and time in the formulation of financing strategy from its own needs,and reduces the risk and cost through internal and external loans,directional additional issuance and so on.Finally,according to the analysis to draw relevant inspiration,hope to provide reference to other enterprises.