Study On Financing Problems Of Enterprise Merger And Acquisition

Under the background of economic globalization, enterprises are facing increasingly fierce and brutal competition. Mergers and acquisitions as an important means of dealing with play an irreplaceable role by more and more enterprises attention and application.Mergers and acquisitions (M&A) activities like other economic activities are the combination of art and science. In the M&A activities, enterprise capital management is one of the core content of enterprise management, which involves a large number of assets transfer. Mergers and acquisitions of enterprises need to invest huge money in the short term. But generally speaking, enterprises can not need to finish the accumulation simply by their own internal financing. Practice has proved that:the different financing strategy determines the success or failure of M&A activity to a considerable extent. a suitable financing strategy of M&A not only can help enterprises to raise sufficient funds to achieve the target, but also can reduce the enterprise financing cost, reduce the financial burden of enterprises, enhance the value of integration after M&A enterprise resource.As one of the capital coat constrains plays a critical role when the managers of the enterprises decide the financing ways. Hence, on the base of studying the influence made by the macroeconomic environment factors on the capital structure of listed companies, this paper choosing the capital cost as an influential factor make a further study by the method of literature review, summarizes the related concept, tools and methods. Through the case explains when use the EBIT-EPS analysis to judge whether the enterprise financing is reasonable, we can use the capital asset pricing model to estimate the enterprise debt capital cost of debt capital in different weights and equity capital cost of enterprises, in order to obtain the weighted average cost of capital, and make reasonable financing decision.In addition, this paper also provide some improvement advices in how to make M&A financing decisions to Chinese enterprises, including vigorously develop the capital market, further improve relevant laws and regulations, further use of leveraged buyouts, convertible bonds, warrants and other financial tools.