The Research Of Financing In Media M&A

To fulfill the enterprise's demand of seeking further development and enhancing its competition, M&A has become one of the most important tools under rapid development of market economy in China. M&A would enable enterprise to realize relative high growth and development in a very short time under cost effective situation. With the global economy integration, M&A become more and more popular in the world wide. Further M&A also became the driver of economy structure reform in many countries. Along with Chinese rapid mercerization process, the enterprise which is important part of market economy participator need to be get itself improved in a very quick manner by implement various approach in production, operation and management process. Further, M&A has became the important method to realize self-improvement after the state owned enterprise reformed. From the academic point of view, M&A is a topic which involved various subject, such as industrial economics, financial management, economy structure and so on. Thereof, financial analysis will be involved into the whole process of M&A by implementing target enterprise's financial position analysis, M&A pricing and financial performance evaluation.M&A is a huge project which cost a lot, hence the financing method selection will be the key element to achieve project successful. In reality, most enterprises are pay more and more attention on the financing method selection process to assure M&A's successful. In developed countries, the market system is better than emerge market, and their aggregate capital supply is generally over aggregate capital demand. In such situation, the enterprise will only need to adopt proper approach to minimize the financing cost at a certain level of financing risk.The economy market of China is on the early phase of the development, the external financing environment need to be further improved, enterprise financing channel and tool is also need to be improved. First task of corporate financing is to have sufficient and stable cash flow, afterwards take the financing cost as the consideration. Thus, to study China enterprise's financing issue, it would be better off to develop the new model based on China's situation rather than apply the existing theory from western world.The Author took the Enterprise's M&A activities as the research object, then firstly state the related theory of Enterprise's M&A and financing issue. Secondly, take Huayi Brothers' M&A with Yinghan Technology as example to discuss this M&A's activity's effectively by introducing the selection of financing instrument during M&A and analyzing the financial data before and after reconciliation. At last, author provided the comments for the current issue in the China's M&A.