The Application Of Mezzanine Financing In Leveraged Buyout

At present,traditional industries urgently need to conduct an industrial transformation and upgrading,my country’s huge traditional industrial volume requires a lot of mergers and acquisition financing to support its transformation and upgrading.However,my country’s acquisition financing system is still not perfect,the legal environmental barriers are high,and bank participating enterprises have higher restrictions,equity financing shareholders,and the threshold for investment initiator is also high,and the overall mergers and acquisition financing channels are relatively narrow.The mezzanine financing is based on the flexibility of its structure,the stability of the income,and the requirements of the leveraged buyout the parties in accordance with the requirements of the M & A of the main body of the mergers and acquisitions.The contradiction between the domestic traditional industries will bring the continued growth of merger financing transactions,and the financing will become an important new financing channel in my country’s M & A market.This article is mainlined by sandwich financing as the main line,first outline the concept,characteristics and theoretical basis of mezzanine financing,and then analyzes the operation mode of ordinary and equity mezzanine financing and its applicability,which is the sandwich financing case of Jiaozuo Wanfang.bedding.Secondly,the case of Jintou Jinzhong used a sandwich financing method to leverage the listed company Jiaozuo Wanfang’s leverage,analyzed the transaction mode and specific process of the transaction,highlighting the unique advantage of the laminated fund in the leverage,and analyzed this time The transaction affects the performance of Jiaozuo Wanfang,has been analyzed in the reasons for the success of Jiaozuo Wanfang M & A.Thus,the classroom conclusion,mergers and acquisitions are an important means of traditional industrial restructuring,new enterprise financing development,while using mezzanine fund financing models can provide structural funds for enterprises,flexible design of mezzanine funds to meet the requirements of the investment and financing Help our traditional enterprises to implement transformation and upgrading.At the end of the article,from the investor position,social perspective,the national level discussed the feasibility and countermeasures recommendations of my country’s development of mezzanine financing.