A Case Study Of The Acquisition Of ZOLIX By Beijing Beetech Inc

In today’s increasingly mature Chinese capital market,M&A has become an important means of expansion and development,and the choice of M&A payment method in an M&A transaction determines whether the enterprise can achieve the initial purpose of the M&A and make full use of the synergistic effect between the M&A party and the subject of the M&A.At present,the payment means available to enterprises in China’s M&A market are relatively single,which makes the game between financing channels and M&A parties very constrained.In November 2018,the SEC officially launched the pilot of introducing Targeted convertible bonds in the M&A restructuring market,thus enriching the types of M&A payment instruments for listed companies and further stimulating the M&A market dynamics.The issuance of Targeted convertible bonds has enriched the M&A payment channels for listed companies in China,while also alleviating the slump in the M&A market since 2018.Many research results have been achieved by domestic and foreign scholars on the study of corporate M&A performance,and it is found that there is a more significant impact of corporate M&A payment methods on the performance of corporate M&A.In terms of the scope of the pilot application of convertible bonds in China,the new payment method has obviously attracted the attention of the capital market,but since its use in China’s M&A market is still short and relevant studies are lacking,there are few studies that combine it with the real situation.Therefore,this paper takes this perspective to further fill the gap in this field through specific case studies.This paper analyzes the convertible bonds as a research object in the context of the case study of Beijing Beetech Inc’s M&A of ZOLIX,and reviews and summarizes the relevant literature to understand the current status of its research and prepare the theoretical development for the next step of the paper.Then,the paper reviews the concepts and theories related to corporate M&A and convertible bonds,their characteristics,and the current status of their application.Then,the paper compares the cost of capital of three payment modes by applying the comparative analysis method from the reasons of introducing convertible bonds as a payment instrument in corporate mergers and acquisitions.Next,based on the case study analysis,the current situation of the M&A parties,the feasibility of the M&A,the M&A process,and the overall scheme of the M&A are explained.Using the event analysis method,this paper analyzes the impact on the stock price of listed companies after the issuance of convertible bonds.Using the financial index method,the long-term economic impact of listed companies is evaluated,which is the financial effect;and the improvement of corporate governance efficiency,which is the governance effect,is explored from the perspective of the change in equity structure.The results show that through the issuance of convertible bonds,there is a significant impact on the short-term stock price effect,and the expected return and excess return of Beetech Inc’s stock appear to rise significantly,with a more significant positive effect,which receives positive market feedback and makes the company’s performance show a positive and positive effect,which is beneficial to the company’s development.By issuing convertible bonds,the asymmetric risks in corporate governance are effectively addressed to avoid excessive dilution of equity and balance the coordination between the interests of all parties.The corporate governance,personnel management,and resource integration risks are effectively suppressed and the M&A efficiency of enterprises is improved after M&A.Finally,this paper summarizes the use of convertible bonds in M&A by giving some insights.Targeted convertible bonds are a brand new financing method for M&A.It has been implemented for a short period of time and the relevant laws and regulations are not yet sound,therefore,investors are mostly still in the wait-and-see stage.However,judging from the current market actively promoting the promotion of convertible bonds,its development trend is very good.In addition,the convertible bonds have the characteristics of equity plus debt nature,which will further accelerate the expansion of its application scope and thus be accepted by the market.Therefore,this paper conducts an in-depth study on the adoption of convertible bonds for M&A by Beijing Beetech Inc,with a view to providing some reference value for future companies in selecting convertible bonds.