A Research On The Economic Outcome Of Enterprises' Leverage Merger

Leveraged buyouts first appeared in the US in the 1970s,small and unnoticed.But in the 1980s,as interest rates went down,high-yield debt rose,a wave of leveraged buy-outs created in the US.After that,the leveraged buy-outs went through the ups and downs and gradually returned to calm.Over the decades,there have been a number of leveraged buy-outs of representatives and acquisitions,notably Michael Milken,known as the"Father of Junk Bonds".Wesray Capital paid $80 million for Gibson and relisted for $290 million in 18 months,and Wesray's own capital contributed only $1 million.And,of course,there is the famous KKR takeover of RJR Nabisco.More and more popular leveraged buy-outs happen in current A-share.Not only in the triangle leveraged buy-outs but also in the self-indebted acquisition,leverage ratio is becoming more and more high,especially involving overseas mergers and acquisitions.The stimulative and quick effect of lever let one after another "snake swallow elephant"-merger appear in the market.The M&A market becomes very "hyperactive",the acquisition scale is bigger and bigger.In this paper,the main research content is divided into six parts:One,Introducation.The paper introduces the research background,research purpose and meaning,this article writing main contents,research methods and innovations and the organization of writing.Two,Literature Review and Theoretical Basis.This part summarizes literature related to leveraged acquisitions and mergers and economic consequences of acquisitions.and concept,features and risks of lever mergers and acquisitions and economic consequences.Three,Case Analysis.We introduced the background,process,characteristics and transaction details of Apex m&a Lexmark,and sorted out the whole case.Four,Analysis of economic consequences,using relevant theories and analysis tools to analyze the economic consequences of the acquisition of Lexmark,and summarize the obvious economic consequences of the leveraged merger.Five,Research Conclusion and Practice.According to the economic consequences of Apex m&a Lexmark,we can see that new progress and improvement of Chinese companies in the new era of leveraged mergers and acquisitions.Suggestions for reducing negative economic consequences for the enterprise are put forward.With the rapid development of the society and the amazing speed of change,the financial risks of mergers and acquisitions in each industry have changed,and different stages have their own characteristics.On the basis of previous research,this paper studies the economic consequences of the acquisition of Lexmark.The paper gives the opinion of the case from restoring the process of Apex m&a lexmark,business situation and the m&a motivation and the change of the capital market and financial index after the merger.In addition,that the case of Apex merger Lexmark,clever design of mergers and acquisitions,diverse financing and financial integration after the merger provides private enterprises worthy reference significance.