Acquisition Finance And Corporate Performance

With the development of market economy, M&A plays an increasingly important role to improve thecompetitiveness of enterprises and development, M&A can promote enterprises to implement low-costexpansion, rapid growth and expansion shortly. Mergers and acquisitions is a costly project, the choice ofwhich financing is one of the key factors of M&A success. Because China’s market economic system isimperfect, so enterprises are facing financing environment is not loose. Such as: tools are not available, thenarrow channels of financing, financing the choice of the type and quantity of relatively narrow issues. Inorder to facilitate the smooth implementation of the M&A activity, companies began highly concernedabout the financing strategy of scientific development and financing of a reasonable choice, And itsprovision of adequate and stable sources of funding, to promote enterprise value creation.In this paper, TBEA since listing a series of mergers and acquisitions activities to in-depth analysis ofTBEA M&A financing strategy and financing choice, Explore TBEA is how to maintain the continuity ofthe production and operation to ensure the smooth implementation of the M&A process, And for the targetcompany and own a great deal of value creation. China’s private enterprises how to overcome thelimitations of the capital markets on the basis of this study, proposed to solve the problem of financing thedraw.This paper first reviews the literature and the classical theory of acquisition finance and corporateperformance、The different corporate performance measurement methods.On this basis, the article TBEA asan example, introduces TBEA M&A financing strategy and implementation process, First, TBEAimplementation of the process of mergers and acquisitions, using its own funds is the main way offinancing, lower cost, is conducive to the implementation of M&A.Second TBEA by allotment andissuance in the capital markets, broaden the financing channels, to solve the difficulties of fundingneeds.Third, raise funds and flexibility in the use of its own funds, to ensure the continuity of the smoothcommencement of the M&A activity and capital chain.Finally,TBEA dare to try to leverage the acquisitionof this new way of financing, in order to expand the ability of financial intermediation. Then analyzed theseseveral different ways of financing the disparate impact of the target company performance and TBEAperformance changes (including:long-term and short-term), Finally, from the perspective of M&Afinancing methods summed up the reasons for the success、Shortcomings in the financing process,Ascontinuous M&A caused by the TBEA higher asset-liability ratio etc, as well as the policyrecommendations for these deficiencies.Through the analysis of this article，I hope to provide a positivereference for China’s private enterprises to overcome many bottlenecks in the capital markets capitaloperation.