Research On Financing Strategy Optimization Of D Company Under The Background Of Overseas Merger And Acquisition

As the domestic market becomes more and more closely connected with the foreign market,many growing domestic enterprises have the ambition to become international giants in their main business.Since most Chinese enterprises have a short period of establishment and lack of management experience and technical accumulation,the acquisition of overseas high-quality resource enterprises has become a shortcut for rapid growth.On the one hand,it can increase the company’s visibility and exposure in the international market,and on the other hand,it can quickly improve the company’s internal technical accumulation.For enterprises’ overseas M&A,"financing" has always been a big problem.Many enterprises’ M&A failed because of inadequate financing.Even though many enterprises have secured the financing to complete the acquisition,they are faced with a series of problems such as subsequent debt repayment.Therefore,for an enterprise,it is very important to formulate financing strategies according to the current situation of the company to promote the completion of overseas acquisition while controlling the subsequent risks of financing.Therefore,this paper,based on the actual situation,takes the financing strategy under the background of overseas M&A as the research topic,and provides constructive suggestions for the financing strategy planning of overseas M&A of domestic enterprises.This paper mainly uses the method of case study,taking the private enterprise D company as an example,combining the internal capital market theory,preferential financing theory and synergistic effect theory to study its financing strategy.First of all,this article through studies of D company financing strategy carries on the summary analysis,it found that D company’s financing strategy exist the following problems: ○1unreasonable proportion of debt financing and deadline.○2 internal capital market financing blocked bound.○3 not effectively guard against exchange rate,interest rate risk.○4 with the cooperation of local government financing to the its commitment to a subsequent investment made too much money,lack of further.○5 current ratio is lower than the industry average all the year round is not conducive to the follow-up repayment.○6 administrative and sales costs after the merger continues to increase spending to take up too much money.And analyze the reason of its existence;Then,based on the actual situation of D Company and based on the principles of cost-effectiveness,feasibility and applicability,this paper puts forward corresponding improvement suggestions for these problems one by one.The main strategies are as follows: ○1 reasonable planning of debt financing deadline with ratio.○2 to promote its scale of the equity financing of listed companies.○3 introducing options and control the exchange rate,interest rate risk.○4through negotiations,and other means to reduce the risk of cooperation with the government financing.○5 may strengthen the acquisition of non-performing assets disposal.○6 added liquidity to promote integration efficiency to achieve synergistic effect to reduce the cost,through the optimization solution in order to enhance the company’s financing strategy,promote the completion of mergers and acquisitions.Through the study on the optimization of D Company’s M&A financing strategy,this paper provides suggestions for domestic enterprises in overseas M&A financing,reduces their financing risks and increases the success rate of M&A...