The Research On The Financing Problems Arising From The Multinational M&a Of Chinese Private Enterprises

As the fast development of the Chinese economy, more and more private enterprises prepare to merge overseas companies, especially industry leaders who suffered heavy blow or even went bankrupt in the global financial crisis. No matter whether the objective of these private enterprises is obtaining the sales channel, the core technology, or evading the trade barriers, multinational M&A are strategically important for all of them. However, they usually face the financing problem, as the cost of multinational M&A is usually high, and the private enterprises are usually underfinanced.This paper considers the financing problem of Chinese private enterprises when they are undertaking multinational M&A. Starting from the analysis of the present situation and the importance of financing issue, this paper researches a lot of cases, compares the financing way of China and the developed countries, and reaches a conclusion: the largest problem of the financing for these enterprises is the lack of financing channels. Then it discusses the root causes and the solutions for this problem. The immature capital market and financing policy are the main reasons. Considering these reasons, this paper made some suggestions.