The Market Performance Analysis Of The Merger Case Of Leverage Financing Purchasing Lexmark International By Apex

At present,among the total foreign direct investment in China,the proportion of cross-border M&A investment has been more than half,and the total amount of cross-border M&A transactions has also increased by nearly 70%per year,which has a great impact on the international economy.However,according to the British "Financial Times" report,in 2016 China’s overseas mergers and acquisitions process worth more than 75 billion US dollars in M&A transactions were canceled,this figure increased by 7.5 times compared with the previous year,and the integration problems after the successful cross-border M&A transactions in China are also emerging.Many factors affecting the success rate of M&A,the financing situation has a great impact on the M&A effect,because cross-border M&A often means large capital demand.Whether the choice of scientific and effective financing methods in the process of cross-border M&A can not only affect the success of M&A transactions,but also have a huge impact on the integration and development of M&A enterprises.In the context of China’s financial financing reform policy,in 2016,Apex cross-border M&A Lexmark International,this merger and acquisition is regarded as a classic case of leveraged buyout.Through financial innovation,Apex has comprehensively applied a variety of financing portfolios,including M&A loans,introduction of private placements,major shareholder loans,equity pledges,private equity EBs,etc.,to complete the huge mergers and acquisitions involving enterprise value of approximately $4.044 billion.The article as a whole uses case analysis and a combination of quantitative and qualitative methods,mainly through the acquisition of Lexmark International’s analysis of leveraged financing M&A performance results.Comprehensive use of event analysis,financial analysis,Tobin Q analysis and entropy method to comprehensively analyze the impact of leveraged buyouts on firm performance,and comprehensively analyze the performance of Apex after mergers and acquisitions in an integrated accounting and economic perspective.Finally,through the analysis,some suggestions are made from the perspective of enterprises and governments.Through research,the article draws the following conclusions:Defining M&A motives is a prerequisite for successful cross-border M&A.Diversified financing solutions are an effective way to solve cross-border financing innovations.Leveraged financing has applicability and brings certain financing convenience to enterprises.It brings challenges to the subsequent integration of enterprises,and effective integration is the key to the success of cross-border mergers and acquisitions.In the short-term integration,the leveraged financing method has had a huge negative impact on the profitability,growth ability and solvency of the company.However,after the sale of the ES business,the effective integration behavior has made the financial synergy indicators of the company rebound.Combined with the entropy weight method,it is concluded that the performance of the various indicators represented by the enterprise performance indicators is not balanced.In general,the profitability has a greater influence on the development of the enterprise,followed by the development capability,and the influence of other aspects is weak.Capacity contributes the least to business performance.However,in the long run,enterprises sacrifice the short-term development capabilities to achieve the purpose of expanding the industrial chain structure of the enterprise,and whether the subsequent integration is effective determines whether the merger is truly successful.Based on the above conclusions,some suggestions have been put forward from the perspective of enterprises and governments.First,at the enterprise level,Enterprises should clarify the purpose of mergers and acquisitions,ensure that the integrity of the information of the acquired companies is understood,and make effective planning for the later integration of the enterprises in the financing stage.In the choice of cross-border M&A financing methods,a variety of financing methods should be used in combination to enhance the diversification of financing methods to diversify financing risks to a certain extent.Strengthen strategic cooperation with private equity funds to diversify financing pressures.The effective integration after financing mergers and acquisitions is an inevitable requirement for achieving the synergy between financial indicators and non-financial indicators.At the government level,we will adjust China’s capital market structure to strengthen the innovation of financial products,strengthen the formulation and improvement of China’s cross-funding financing laws and regulations,relax supervision over the administrative control of cross-border M&A financing,and actively encourage the expansion of private enterprises’ financing for overseas high-quality assets.