Research On The Financing Methods Of Cross-border M&A In Chinese Enterprises

In the background of economic globalization,Mergers and acquisitions activity among enterprises has been increasing.Mergers and acquisitions have become an important way for enterprises to expand their market share and realize globalization.From the perspective of mergers and acquisitions activity,mergers and acquisitions financing is an important factor to determine the success or failure of cross-border mergers and acquisitions,as any successful mergers and acquisitions case has a strong capital chain support,especially in the cross-border mergers and acquisitions.In the process of mergers and acquisitions,mergers and acquisitions often need to pay a lot of funds to complete the large-scale overseas mergers and acquisitions,which requires one or even a variety of financing methods to achieve.However,China has long been bound by the old economic system,the new economic system has just risen,the basic conditions for corporate financing environment is poor,the lack of a good environment and channels.Therefore,when we study the mergers and acquisitions financing of Chinese enterprises,we should not blindly apply relevant theories abroad,but should fully consider China’s national conditions,on this basis,the specific analysis and judgments.Choosing the right financing method and using the right financing strategy can help the enterprise raise the huge amount of capital needed for the merger and acquisition,reduce the financing cost and financing risk effectively,and make the enterprise have more resources for the integration and development after the merger and acquisition.Financing is important in the process of cross-border mergers and acquisitions,complex content,at the same time also is one of the key step in the transnational merger and acquisition decision-making,how to carry out mergers and acquisitions financing has a great influence in the success or failure of the merger and acquisition.In this paper,starting from the relevant theoretical knowledge of mergers and acquisitions financing,analysis is made on the financing way of transnational merger and acquisition,and analyze the different financing ways of the different financingcost and financing risk,transnational mergers and acquisitions in China shuanghui company us food giant smithfield foods company as an example,the summary of shuanghui effective strategy in the cross-border mergers and acquisitions financing,and to provide the reference and the suggestion,hope for the future use of leveraged buyouts in overseas m&a financing model of the relevant enterprises to give valuable reference.