Research On Cross-Border M&A Financing Of Xi Wang Food Company

In recent years,under the guidance of the "Belt and Road Initiative" global policy,the cross-border M&A activities of listed companies have become more frequent.In 2016,both the number of overseas M&A by Chinese-funded enterprises and the financials hit record highs,surpassing the total mergers and acquisitions over the past four years.The choice of financing models for cross-border M&A plays a key role in the performance of M&A,so how to choose the appropriate financing model for M&A has long been a hot spot in the real world.M&A funds have entered the country and have grown to the present size of only a dozen years,but their growth rate far exceeds the expectation of the capital market.Due to the constantly changing policy environment in domestic capital markets,M&A funds have gradually developed into a model with Chinese characteristics.In 2012,Silicon Valley Paradise,the first investment company,pioneered a new model of "listed company + PE" M&A fund.Due to its flexible design arrangement and its ability to fully integrate the advantages of industrial capital and financial capital,it left a large The space,once presented,has drawn the keen interest in the capital markets.This model plays an important role in promoting the readjustment of the industrial financing structure,helping the listed companies in the mature stage of transformation and upgrading and promoting the development of the capital market.Cross-border M&A is complicated due to the multi-level transaction structure,laws and regulations and other factors.Enterprises often miscarry the M&A program because of the break of the capital chain and debt default.The value of the case of M&Listed companies conduct cross-border mergers and acquisitions,put forward a new model of operational financing of M&A funds.So as to integrate the resources of itself and mergers and acquisitions to realize the combination of industrial capital and financial capital so as to achieve the purpose of deepening the reform and upgrading the industrial technology so as to increase the momentum for sustainable development of the real economy.This article takes case analysis as the main research method.First of all,based on different financing models and M&A funds related theories are introduced.Secondly,it has comprehensively sorted out the plan of raising funds from the announcement of the announcement to the completion of the M&A activity,how to set up the organizational structure and arranging the management of the debt subsidence after the vote.Then,from the financing cost comparison analysis of this line to conduct a specific analysis of the financing model,and finally put forward personal suggestions and opinions.The success or failure of cross-border M&A lies in the meticulous arrangement and convergence of fund raising,investment,management and reimbursement.The financing model is the core element.This study finds that:the use of M&A fund leveraged attributes to start mergers and acquisitions,saving mergers and acquisitions costs;reasonable use of related parties to increase credit measures to achieve inter-financial funding;to make full use of innovative financing instruments such as asset securitization or the use of mezzanine capital Financing mode,by maintaining a reasonable capital structure,effective control of financial risks.Also attach importance to the conclusion of the partnership agreement,set up a reasonable structure of M&A funds to ensure that less capital can also be controlled,strictly guard against institutional and legal risks.