The Path Research Of The Corporate Value Creation Under The Leverage,with The Quames Furniture M & A Ekornes ASA As An Example

In recent years,with the implementation of the "double cycle" strategy,the macro policy of "supply-side structural reform" has been further deepened,the level of China’s opening to the outside world has been further deepened,various support policies such as foreign trade and investment have been improved,and the overall strength of domestic enterprises in foreign cooperation has been further strengthened.The development of The Times has brought new business opportunities.The furniture industry,as the main force of our manufacturing industry,has become the key to the survival of enterprises in seeking new solutions and developing new markets in the case that the domestic market tends to be saturated.In this context,in order to seize the opportunity of development and expand the international market,many enterprises begin to seek ways to "break through",such as: through mergers and acquisitions to open the way for enterprises to expand overseas.Although national policies vigorously support enterprises to "go global",some enterprises still cannot open the door of "going global" due to their own factors such as scale,strength and self-owned capital.At this time,the emergence of leverage financing effectively helps enterprises solve the problem of capital restriction in the process of merger and acquisition,and some enterprises achieve long-term development through the financial leverage brought by financing.Create more value for the enterprise.Different from traditional financing methods,leverage financing can help enterprises with insufficient capital leverage greater benefits with limited capital to meet the needs of long-term development of enterprises.On the one hand,the enterprises using leveraged M&A only need to invest less capital to obtain loans from financial institutions for M&A.On the other hand,leveraged M&A is conducive to fully mobilizing the enthusiasm of equity participants and bringing good returns to investors.However,leveraged M&A is also a double-edged sword,in which many uncertain factors will still bring certain risks to the future development of enterprises.Leveraged mergers and acquisitions can easily lead to tight capital flow of enterprises.If the high leverage brought by leveraged mergers and acquisitions "stays high",it will bring bankruptcy risk to enterprises.Risks and benefits often coexist.How to integrate and manage resources to stimulate synergies of M&A,how to create profits for enterprises through leverage,and how to reduce leverage ratio to ensure long-term and stable development of enterprises are all important factors to be considered in leveraged M&A.Therefore,it is uncertain whether there is an appropriate path to create value for enterprises behind the use of leveraged mergers and acquisitions.Based on relevant researches and literatures of previous scholars,this paper combines case studies with theoretical studies to explore whether enterprises can achieve value creation through leveraged M&A activities,and further focuses on specific paths of value creation.Firstly,the background and current situation of overseas M&A system of domestic enterprises are sorted out,and the motivation of leveraged M&A in furniture industry is analyzed from the theoretical level.Secondly,combined with the example of Qumei Household’s leverage acquisition of Ekornes ASA,this paper further studies how to promote synergies by changing development strategies under the pressure of high leverage debt,how to optimize enterprise capital structure with the help of tax shield effect,further reduce agency costs and improve corporate governance efficiency.Finally,the two paths are realized to create value for the enterprise,so as to draw the conclusion that leveraged M&A can create value for the enterprise,it is clear that there are other value creation paths except synergistic effect.This study is expected to help enterprises reduce the high leverage brought by M&A,improve the efficiency of enterprise resource integration,provide a path for more enterprises who want to achieve value creation through leveraged M&A,help enterprises to achieve a higher level of "going global",help enterprises to create more short-term economic benefits and lay a solid foundation for enterprises to achieve long-term development.