Research On The Choice Of Payment Method In The Merger And Acquisition Of Automation Equipment Enterprises

With the steady development of my country’s economy,the continuous maturity of the financial market and the gradual improvement of relevant laws and regulations,M&A have gradually become an important means for enterprises to enhance their market competitiveness.Due to the benefits of M&A,such as enhancing their own competitive advantages,expanding market shares,and integrating resource allocation,and with the support and encouragement of regulatory authorities,domestic companies have set off a wave of M&A.On the one hand,the number and scale of domestic M & A are increasing;on the other hand,the payment methods in domestic M & A also show a trend of diversification.On the basis of cash payment and stock payment,other payment methods such as warrants,corporate bonds and convertible bonds have emerged as payment methods for M&A.Among them,compared with other payment methods,convertible bonds can not only relieve cash pressure but also reduce the risk of equity dilution for shareholders,which is favored by many companies.However,the management of some companies failed to consider a series of issues such as the cost of M&A,the actual situation of M&A,and the risks of M&A when choosing the payment method for M & A,which made the M&A of these companies ineffective,and even led to the failure of M & A,which had an adverse impact on the enterprise.Therefore,this paper studies the impact of M&A payment methods on M&A activities based on real cases,which can not only enrich the theoretical research of M&A,but also have practical significance for the development of M&A payment methods in my country.First of all,this paper sorts out domestic and foreign studies based on the influencing factors of corporate M&A payment methods and the impact of corporate M&A payment methods on financial performance,and summarizes the limitations of related research.Secondly,this paper defines the relevant core concepts,and summarizes the theory of control rights,limited cash flow theory and the theory of M&A motivation in detail,forming the theoretical basis of this research.Thirdly,this paper uses comparative research method,literature research method and case analysis method to study how companies choose M&A payment methods.Based on the case of Company K’s acquisition of Company Q,this paper analyzes Company K’s M&A motivation,M&A payment strategy and M&A payment method selection,and focuses on the payment method of convertible bonds.Finally,based on the case analysis,corresponding suggestions are put forward from the policy level and the industry level respectively,in order to provide help for the choice of domestic enterprises’ M&A payment methods and the smooth progress of M&A activities.