Research On The Choice Of Payment Methods In Cross-border M&A

After the financial crisis,the global reshuffle spurred the booming of cross-border M&A.Under the guidance of the "Going Global" policy,more and more Chinese companies have also joined in the cross-border M&A which have increased substantially year by year both in terms of volume and turnover.In the entire process of cross-border M&A,M&A payment as the last step not only determines whether the M&A can be successfully completed,different payment methods will even affect the post-merger integration effect.Therefore,the research on cross-border M&A payment methods is significant and necessary.However,unlike the mature M&A payment methods in Western countries which experienced several tides of M&A,China's M&A payment methods are relatively simple both in theoretical research and in practice.Therefore,it is of great significance to study the payment methods of cross-border M&A in China's national conditions instead of blindly applying Western theories.This article combs the theories about M&A payment methods both at home and abroad,and establishes a framework for the selection of payment methods for cross-border M&A in China.This framework is used to analyze the influencing factors of the payment methods of BTG hotels cross-border mergers Homeinns hotel,from the aspects of legal policy,exchange fluctuations,information asymmetry,financing cost,equity structure,financial condition and purpose of M&A to compare different payment methods,and finally concluded that the choice of payment methods that BTG hotels used cash to pay minority shareholders'equity,used stocks to pay for large shareholder's equity,and issued stocks to raise matching funds was successful,and there was also room for improvement.The final conclusion summarizes the effective strategies of choosing payment methods in cross-border M&A for reference.