Mergers And Acquisitions, Debt Financing

In recent years, the M&A activities conducted by all sort of enterprises in China have become increasingly active. However, compared to the M&A tide of United States as well as the other Western developed country, those activities just started.The enterprises initiating the merger and acquisition often faces several obstacles, such as the financing cost is relatively high, the financing channel is pretty narrow, the financing risk is comparatively big, financing amount is limited and so on.Along with the marketability development and maturity of the capital market in China, it is highly essential to analyze the operational mechanism of M&A, to study the debt financing condition of the enterprises conducting M&A, to profit from the successful experiences of Western developed country and enrich M&A financing tool.Incorporating the finance innovation theory and evolutionary game theory, the article starts to deliberate the historical development and the present situation of M&A debt financing in China and analyze the intrinsic impetus factor underlying the adoption of M&A debt financing from the angles of enterprise, the investment intermediary and the supervision organization, in order to truly understand the inevitability and the necessity of M&A debt financing development in our country, providing the corresponding theory basis for enacting related policy.In order to make a comparison, this article attempts to make a generalized analysis of M&A debt financing in the united states from the perspective of enterprise, the investment intermediary and supervision organization and to understand the intrinsic driving mechanism rooted in the M&A debt financing.After the analysis mentioned above, this article also proposes several feasible policies regarding the development of M&A debt financing in China in order to upgrade the industrial structure and enhance Chinese economy development.