Research On Cross-border M&A Financing Of China’s Home Appliance Enterprises

In order to promote the upgrading of China’s manufacturing industry and enhance the international competitiveness of "Made in China",the country has vigorously developed the manufacturing industry.As an important part of the manufacturing industry,home appliance companies are also constantly improving themselves in various ways,and the more commonly used method is multinational mergers and acquisitions.On the one hand,it can acquire the advanced technology of foreign companies in this way to develop yourself.On the other hand,the competition of home appliance companies in the domestic market is very fierce.This method can help companies to seek more markets abroad.Based on the above two points,in the past three decades,China’s home appliance companies have carried out many cross-border mergers and acquisitions,and have rich experience in cross-border mergers and acquisitions.Although there are many mergers and acquisitions in China’s home appliance industry,the failure rate has remained high.One of the key reasons is that the financing has not been handled properly.Due to the huge amount of funds involved in cross-border mergers and acquisitions,many companies are unable to complete the fund-raising work within the prescribed time and are forced to abandon the mergers and acquisitions.Even though some companies have successfully acquired the target company,their solvency and cash flow Affected by the financing methods used,the later stage of business development was very difficult.By studying the financing issues of cross-border mergers and acquisitions of home appliance companies,on the one hand,it can help China’s home appliance companies to get out of their current difficulties in cross-border mergers and acquisitions financing and improve the success rate of mergers and acquisitions.On the other hand,home appliance companies,as the pioneers of the Chinese manufacturing industry’s "going global",other manufacturing industries can use their successful merger and acquisition experience as a reference to avoid M & A financing traps and accelerate the "going global" pace.This article first introduces the background and significance of studying the cross-border M & A financing of China’s home appliance companies,summarizes the relevant research results of cross-border M & A financing and reviews it,states the research methods and research ideas,and points out innovations and shortcomings.Second,it defines cross-border mergers and acquisitions and cross-border mergers and acquisitions financing.It intends to study cross-border mergers and acquisitions financing from three points: financing methods,payment methods,and financing risks.Therefore,these three points are introducted,and the status of cross-border M & A financing for home appliance companiesthe is analyzed.Thirdly,this article analyzes the choice of cross-border M & A financing methods for China’s home appliance companies from the perspective of M & A motivation and capital structure,and analyzes the choice of cross-border M & A payment methods for China’s home appliance companies from their own strength and capital market maturity.On the basis of debt capacity and liquidity,the risks of M & A financing arrangements were identified and evaluated,and the problems in cross-border M & A financing of home appliance companies in China were summarized.Forthly,Midea’s acquisition of KUKA is analyzed,and its worthy reference and existing problems in its financing arrangement are summarized.Finally,the author puts forward suggestions for financing problems of cross-border mergers and acquisitions of China’s home appliance companies from three aspects: financing methods,financing capabilities,and financing risks.