Research On The Utility Of M&A Funds In Cross Border M&A Of Listed Companies

In recent years,under the trend of economic globalization,the domestic capital market has become increasingly active.Some listed companies in China need to expand new overseas markets.Meanwhile,they also want to obtain advanced production management technology in the world through cross-border M&A in order to further expand the global business layout of the industrial chain.However,due to a series of problems such as cultural and legal differences,financing and payment,there are great difficulties and risks in the specific operation process of cross-border M&A,and the actual success rate is low.At the same time,under the background of new economy in China,M&A Funds,as a strong and strong combination of financial capital and industrial capital,has a comprehensive advantage,and its operating environment in law and supervision is also continuously optimized.Under the background of policy promotion and practical demand,in recent years,more and more listed companies choose to set up M&A Funds as the acquisition carrier in the design of cross-border M&A transaction structure,so as to avoid the acquisition risk and improve the success probability of M&A.Based on this,the research questions of this paper are: Through case analysis,this paper explores the functions and effects of M&A Funds in cross-border M&A of listed companies,what risks exist,and how to make better use of M&A Funds in cross-border M&A.The research idea of this paper: on the basis of combing the previous research and related theories,taking the case of NBJF’s merger and acquisition of Grammer step-bystep transaction to achieve cross-border M&A for example,this paper studies the utility of M&A Funds in cross-border M&A.Firstly,this paper introduces the transaction background,the basic situation of participants,the process of M&A and the mode design of M&A Funds of NBJF.Then,taking the case of M&A Funds scheme design,financing and payment methods as multiple entry points,this paper studies the positive role and limitations of M&A Funds participation in the decision-making and implementation of cross-border M&A of listed companies and the exit stage of M&A Funds,and then draws relevant research conclusions.The research findings and practical value of this paper are as follows: The application of M&A Funds can create conditions,facilitate cross-border M&A of listed companies,accelerate the process of M&A,and help reduce cross-border M&A risks.However,while M&A Funds play a positive role in cross-border M&A application,it may also lead to problems such as increasing acquisition costs,insider trading,and damaging the interests of small and medium shareholders,and there is a lag in operation,legislation and supervision.Finally,this paper puts forward relevant suggestions from each subject level,including improving the negotiation work in the early stage of M&A in listed companies,continuously filling the regulatory loopholes in policies and regulations,and improving the use of professional resources in M&A Funds,so as to promote the healthy operation of M&A Funds,make them better play their advantages in the cross-border M&A market,and help the development of the real economy.The research and conclusion of this paper is expected to provide some experience and Enlightenment for listed companies in China to choose M&A Funds for cross-border M&A in industrial upgrading,which has certain practical significance.