Research On Financing Problem Of Enterprise M & A

In the process of allocation of resources, and mergers and acquisitions as its main route, on the one hand it can be active in a market economy on the other hand can improve industrial concentration. Especially for China’s steel enterprises, in the face of a series of stressful situations, through mergers and acquisitions integration of resources, to improve the competitiveness of China’s steel it has a very important practical significance. In general, the success of mergers and acquisitions, including many aspects:the choice of acquisition targets, acquisition price and the choice of payment methods, post-merger integration and other aspects will affect the effectiveness of the merger. Where financial support is one of the factors essential to the process of mergers and acquisitions, and only in the case where the company has sufficient funds to complete the acquisition of possible behavior. Successful mergers cannot do without financial support, different ways of financing, The fund-raising also involves many aspects, different ways of financing, financing, financing costs, financing risks and the smooth financing channels or not, determine the effectiveness of the M & A activity. On the basis of relevant theories and acquisition finance our acquisition financing environment, through research on the status quo of China’s steel enterprises financing mergers and acquisitions, combined with specific cases of mergers and acquisitions in China Steel Enterprises Financing Problems for analysis.Due to the special nature of China’s steel enterprises, state-controlled iron and steel enterprises in financing capacity, policy support and other aspects to be absolutely superior to private enterprises, China’s steel enterprises and financing mergers and acquisitions in the banking debt financing absolute position, China’s steel enterprises, mainly through mergers and acquisitions financing bank loans, financing channels for a single, limited especially private enterprises, not only its financing capacity, financing channels are more limited. China’s private steel enterprises in the face of a series of credit tightening its acquisition financing is more difficult to take new financing, risk control and financing, thereby reducing the cost of acquisition is the acquisition and financing concerns. China’s steel enterprises merger and financing policies of great influence, on the one hand the government is in the steel industry mergers and acquisitions play a leading role, the market ignored the effect, on the other hand the government is more limited in its M & A financing, is not conducive to steel companies development of. In the strict control of corporate mergers and acquisitions financing risks, the rational use of new financing instruments M & M funds, trusts, etc., provide financial support for mergers and acquisitions to become China’s iron and steel enterprises merger inevitable question.