A Case Study On The Application Of M&A Funds In China Tianying’s Cross-border M&A Urbaser

At present,China’s economy is gradually turning to a stage of high-quality development.The contradiction between overcapacity and undersupply in different industries caused by the unbalanced economic structure still exists.Industrial integration and industry-finance integration will be the new development direction of the M&A market,and will also provide opportunities for the vigorous development of M&A funds.Among them,the "listed company+PE" M&A fund has significant advantages.Its organizational form and profit model are more suitable for the status of the Chinese M&A market.It can break through the financing constraints faced by listed companies.It has developed rapidly since its first application in 2011,and has occupied a dominant position in domestic mergers and acquisitions funds.Through the establishment of Huayu M&A Fund,China Tianying successfully realized the large-scale acquisition of Urbaser with snacks,completed the transformation to a solid waste processing industry chain operating company,and achieved breakthrough development.As the largest cross-border M&A in the environmental protection field in recent years,it has industry Weather vane meaning.This article has thoroughly studied the specific application of M&A funds in the five-stage M&A process of establishment,fundraising,investment,management and exit.On the basis of studying the case of China Tianying’s establishment of a M&A fund cross-border M&A Urbaser,the application of priority financing theory,information asymmetry theory,principal-agent theory,and synergy theory is used to study the entire process application of M&A funds.Use the literature research method and case research method to conduct an in-depth analysis of the motivation,operation process,application effects and shortcomings of the M&A fund.Specifically,the establishment of an M&A fund is intended to ease the financial pressure of China Tianying,which is conducive to the integration of multi-party resources to control M&A risks and improve efficiency,while reducing the exit risk of PE institutions.M&A funds are further innovatively constructed using the framework of"controlling shareholder+listed company+PE".The financing structure design of "equity leverage+debt leverage+multi-layer structure" is carried out in the early stage,and the latter adopts the method of introducing equity investors and borrowing the new to repay the old.Reduced debt pressure,used contingent payment plans in investment management to disperse information asymmetry risks of listed companies,assisted them in industrial integration,and later demolished structures to meet regulatory requirements,avoiding cross-shareholding while ensuring control of listed companies stable.It is found that the M&A fund is established as the company’s stock price In the short term,it has brought significant excess returns,and its operational capabilities and growth capabilities have been significantly improved.The talent echelon building has achieved remarkable results.The research and development capabilities have been strengthened year by year,and the overall financial performance has also been significantly improved.However,there are still financing levers in the application of M&A funds.Insufficiency such as excessively high,divergent goals of participants,and insufficient information disclosure.Based on the above analysis,the experience of Huayu M&A fund application is summarized:choosing a reasonable fund framework,designing a flexible transaction structure,dismantling the structure to meet regulatory requirements,and deriving from both aspects of M&A funds and policy supervision for the lack of application Implications:The former needs to choose an appropriate financing scale while focusing on investor relationship management,while the latter needs to strengthen information disclosure management while further improving subsequent supervision.