Case Study Of Tianshan Shares’ Merger And Acquisition Financing

In the background of maintaining rapid development of China,one of the important contents of economic activities is the enterprise merger and acquisition activities.M&A financing has also become an effective way for enterprises to improve their competitiveness and achieve rapid development under the fierce social environment.On the one hand,because the Chinese financial market started relatively late,the construction is not yet perfect,the Chinese regulations on merger financing has not been established.On the other hand,since the merger financing channel of listed enterprises in China is relatively single and the financing way that listed enterprises can choose is very restricted,resulting in the unobstructed market of merger and acquisition,affecting the expansion of enterprises and the growth of operating performance.In addition,the huge amount of capital required for M&A also affects the smooth progress of M&A.It is the main problem to follow the principle of minimum financing cost,reasonable financing structure and optimal financing opportunity to help enterprises obtain M&A funds in the best financing way.Therefore,this thesis makes a comparative analysis of different financing modes during the merger and acquisition of listed enterprises,and puts forward that listed enterprises should choose more favorable financing mode for their long-term development,so as to improve the efficiency of the merger and acquisition,which brings enlightenment to the expansion of the enterprises in various industries of China.Based on this,starting from the concept of enterprise M&A financing,this thesis applies MM theory,static trade-off theory and pecking order theory,and also applies literature research method,case analysis method,quantitative and qualitative research method to analyze the selection of M&A payment method and financing method of Tianshan Stock,a case enterprise selected in this thesis.On this basis,using event study method to objectively evaluate the financing effect of the case enterprise and judge that there is room for optimization of the M&A financing way of the case enterprise,and put forward the optimization of the M&A financing plan according to the existing problems of the M&A financing way and related influencing factors.In the choice of payment method,due to the huge funds involved in this merger and acquisition,Tianshan mainly chooses the equity payment method,which can realize the formation of an interest community,income sharing and risk sharing with the target company.In terms of the choice of financing methods,Tianshan Stock mainly adopts external equity financing,without reasonable application of debt financing.Through the comprehensive evaluation of the financing way of merger and acquisition,it is concluded that the financing way of this case is relatively simple,unreasonable capital structure and other problems.It is suggested that enterprises should adjust their debt structure according to their short-term and long-term solvency.Part of M&A funds should be financed by debt.If the enterprise adopts the way of equity financing to raise funds,then for the enterprise to issue stock timing is very important.Finally,some suggestions are put forward,which suggest that enterprises should actively expand financing channels and make full use of new hybrid financing methods,design reasonable financing structure,strive to improve professional financial management talents,and the government should focus on improving the financing environment for listed companies.