Analysis On The Application Of Earn-out In China’s Cross-Border M&A

In order to have scale economy,on how to improve production capacity and increase company profit,International M&A becomes a favorable way to utilize financial capital.In recent years,Chinese enterprises are doing International M&A continuously with great passion.However,China still faces a lot of impede and constraint with International M&A.It deserves deep search and exploration on how to get out these constraint and impede while improving the success rate of International M&A.This thesis will start from the payment term of International M&A,take case of International M&A from MITENO TO BBHI,discuss how MITENO successfully used Earn-out plan to complete 6.3billion transaction,combine previous studies,deeply search its positive and negative effects that may happen with this kind of payment term,find out how to operate with its maximum advantage.Hereto,this thesis will split into 6 chapters to study the cases.The 1st Chapter will introduce the topic selection,its significance,research way and contents.It will contain some international literature related to Earn-out.The 2nd Chapter will introduce the theory outline related Earn-out.The 3rd Chapter will describe the whole story of the International M&A between MITENO & BBHI,including general information of both companies,reason of this International M&A and the whole process.The 4th Chapter will discuss the reason and effects to use Earn-out plan in this International M&A,analyze in detail for the designed Earn-out plan.The 5th Chapter will study possible positive & negative effects when use Earn-out plan and give relative advises.The 6th Chapter will be the conclusion and future outlook of this topic.