The Application Of LBO In Overseas M&A

At present,in the context of vigorously promoting about the "going out" strategy of China's economy,enterprises choose to conquer the international market by acquiring overseas companies.Leveraged buyout is a special way in the process of M&A,which means completing the transaction by increasing the financial leverage of the company.This method can get out of the dilemma in lacking of huge M&A funds effectively in the process of overseas mergers and acquisitions of Chinese enterprises,and cooperate in expanding overseas thereby.However,it is even more difficult in the process of using the method of leveraged buyout for overseas mergers and acquisitions due to the starting late of leveraged buyouts in our country.For example,there are major problems in the selection of target companies,the determination of financing methods,and the prevention and risks control.The thesis has conducted a comprehensive and systematic research by combining the two methods of literature research and case analysis in order to accelerate leveraged buyouts which can play a greater role in China's overseas mergers and acquisitions in the future.First of all,the thesis explains the concept and mode of operation of leveraged buyout in the theoretical part.Secondly,the thesis analyzes the motives,financing methods and risks of leveraged buyouts systematically in overseas mergers and acquisitions by using coalescent with the actual cases in recent years.Then,the research takes the case of Tianhai Investment and Ingram Micro International,which is the most typical overseas leveraged M&A case in 2016.And it comes to the advantage and deficiency which our enterprises can obtain in the overseas leveraged buyout transactions through using coalescent of analyzing the motives,financing models and risks of this merger.Finally,the thesis puts forward relevant suggestions of Chinese enterprises in overseas mergers and acquisitions about the selection of financing mode and the prevention of risk.The research of the thesis can be useful as a reference for enterprises when they intends to conduct overseas leveraged buyouts,which will help them to choose the financing method of leveraged buyouts rationally in the transaction process,improve the risk prevention and response capabilities effectively,and enhance capacity for their sustainable development.