The Influence Of Cross-Border M & A Financing And Debt Paying On The Corporate Value

This paper studied the influence of cross-border M&A financing and debt paying on the coporate value with Haers' acquisition of SIGG as an example.We anlyzed the structure of the acquisition and explained its impact on corporate value.In theoretical research part,we first contrasted common ways of financing and debt paying in cross-border M&A,and anlyzed the unique pattern shown in Chinese cases by empirical data since 2015.Next,based on earlier capital structure thoery,this paper pointed out factors which would influence the corporate value such as capital cost,risk,and tax.We corporate in these factors into a cross-border M&A context and provided ideas to improve corporate value with these considerations.In case study part,we first analyzed the original stucture of Haers' acquisition,and explained its intent to improve corporate value by arrangements as Overseas loan under domestic guarantee,SPV etc.Also,We applied a “debt-pushdown” scheme to improve the debt-paying design in the example by matching the interest payment with operating cash flow of the target company,which would help to achieve a higher tax shield effect and thus a higher corporate value.