The Selection And Optimization Of Financing Methods Among M&A Of Listed Companies

M & A refers to mergers and acquisitions among enterprises collectively. Today, as the global trend of economic integration the further strengthening of M & A as a rapidly expanding market share, the formation of scale, optimize the capital structure of an effective means are increasingly subject to attention. Within a global, corporate M & A wave is mounting, it has become a national economic restructuring of inherent dynamism. In China, along with the accelerated process of China's market-oriented, as the carrier of the market economy of enterprises will inevitably meet the internationally accepted model of production, operation, management, development and growth, along with the deepening of China's state-owned enterprise reform, corporate mergers and acquisitions have been become a beautiful landscape on the capital market line, it too will be among our country's economic structural adjustment efforts of an emerging industry.Modern enterprises increasingly large scale mergers and acquisitions involving the transfer of substantial assets. From the research point of view, mergers and acquisitions is a complex science, specifically including the industrial economics, financial theory, management and many other subjects, which also runs through the financial analysis, mergers and acquisitions throughout the process, which includes analysis of target company financial position, mergers and acquisitions pricing, mergers and acquisitions, corporate finance, mergers and acquisitions of financial performance evaluation and so on.M & A is a costly project, how to choose mode of financing is a key factor in the success of mergers and acquisitions, one in the modern M & A, various companies have increasingly recognized the choice of financing mergers and acquisitions in order to ensure the smooth progress of mergers and acquisitions. In the developed market economies, the market system is sound and complete, and funding is adequate, the capital market situation is the total supply of capital is greater than the demand for capital, companies only need to consider in a given financing risks, the choice of financing a way as to minimize the financing costs, namely, how to get the minimum cost of financing capital structure.Since 1984, China has produced the first example of M & A cases (Baoding, Hebei, Baoding Textile Machinery use the way of assume the full credit and debt of Knitting Equipment Factory to acquire them) So far, mergers and acquisitions have achieved rapid development, from 1998 mergers and acquisitions increased with 70% annual growth rate, jumping to the third-largest M & A market in Asia. Despite this, compared to the West developed countries, owing to early stages of development for the domestic market economic system, enterprises are facing a not relaxed financial environment, immature capital markets, the financial system is not perfect, types and quantities of financing options for corporate is still relatively small, non-standard operations and unreasonable government intervention in M & A financing have occurred in many cases, financing channels of mergers and acquisitions do not seem very smooth, which greatly restricted the promotion of mergers and acquisitions play a role in the rapid development of enterprise. Thus, in studying the issue of China's mergers and acquisitions financing, you can not simply copy the foreign financing of mature theory, we must make a specific analysis according to the actual situation in our country. Actively learn from the successful experiences of foreign countries to improve the financing environment of China's mergers and acquisitions, and vigorously develop China's M & A financing instrument play an important role in the promotion of mergers and acquisitions financing development of our country.The study and understanding of M & A practice becomes deeper and deeper, with the merger and acquisition activity continued active, roughly gone through three stages:understanding, procedural practices, the problem analysis. In overall, the current M & A theoretical study is in the induction of practice in general, more focus on the whole, from a macroeconomic point of view to study mergers and acquisitions activity, or a simple analysis of the cases, there were not comprehensive and profound theoretical explanation of M & A micro-mechanism, especially for such a capital market in China, which still need to improve the environment of mergers and acquisitions under the operational mechanism, lack of making a theoretical explanation of a general theory of meaning-oriented and empirical analysis, such as:from micro-level to conduct research of enterprise optimization and choice of mode in financing.In 2006, China M & A market is surging. After the split share structure reform provides a market-based to a large flow of resources, "the new acquisition of a listed company management approach" has brought institutional change to the market mergers and acquisitions, M & A big time is kicked off in China.In this paper, from a listed company point of view, on the detailed description and comparative analysis basis of financing methods acquisition financing, based on the combination of M & A financing of China's current status, we conducted an in-depth study of its problems, as well as the reasons for these problems, and explore the development of China's M & A financing means to promote the theory of China's M & A financing and the improvement of the environment and development.In the first part introduces the concept of mergers and acquisitions and mergers and acquisitions financing, and then conduct the relevant literature analysis of optimize the choice of mergers and acquisitions financing in both domestic and foreign, and then detailed the basic theories of Western M & A financing, including the MM theorem, agency cost theory, asymmetric information theory and control theory, as the focus, analyzing a variety methods of mergers and acquisitions financing:debt financing of mergers and acquisitions, which focused on the senior debt financing and subordinate debt financing; equity financing of mergers and acquisitions, which focused on analysis of equity financing, convertible acquisition financing and the equity-based financing; mixed mode of financing mergers and acquisitions, which described in detail convertible bonds and warrants financing.The second part is empirical part of this article; select the actual data sample of listed companies in China to conduct the empirical analysis of optimizing M & A financing options. First of all, this chapter proposed means of financing mergers and acquisitions and the definition of optimal financing optimizing selection criteria in corporate mergers and acquisitions. How to measure the choose of an M & A financing option is scientific or not, financial structure is reasonable or not standard is to see whether it can help to achieve a maximize value of the new business. How to achieve enterprise value maximization, in specific business activities, we often assess it through the business of financial indicators, in which the most important indicator is the net income per share (EPS). Second, the selection of M & A data from a sample of listed companies in 2006 in China, using multiple linear regression model to analyze the impact of a variety of financing mergers and acquisitions methods on the business value impact. Through the contrast of acquisition of pre-merger and post-merger, analysis of listed companies problems in financing of the optimization and selection among mergers and acquisitionsPartâ…¢, in the preceding chapters, based on the results of the empirical analysis, we conducted an in-depth study of the reasons of China's listed companies, mergers and acquisitions financing can not be achieved optimization-the factors which constrained optimization of China's M & A financing choice:in mergers and acquisitions, the narrow channels of financing mergers and acquisitions; the acquisitions finance of listed companies in China showed adverse selection; in the finance acquisitions of listed companies, the phenomenon of irregular is serious; financing laws and policies in acquisition are not imperfect, M & A restrictions on the choice of financing; China's capital market system is not perfect; intermediary financial services is limited; a lack of institutional investors; the quality constraints of enterprises and investors; mergers and acquisitions in China are mostly color with the administration.Part IV, according to the constrained factors which restrict the optimization of China's M & A financing choice, respectively, from the establishment of sound laws, regulations and policy system, vigorously develop the capital market and weakening equity financing preference of listed companies, to develop investment banks and other intermediary organizations, innovation and M & A financing instruments, mergers and acquisitions of listed companies to change the non-market aspects of the financing.