Research On The Financing Strategy Of “Snake Swallow” Overseas M＆A ——Taking The Acquisition Of Nexperia Holding B.V By Wing Tech As An Example

Since China began to reform and open up,Chinese enterprises have gradually entered the international market.Then,in recent years,with the proposal of “the Belt and Road” and “Made in China 2025” strategies,Chinese enterprises are stepping out at a faster pace in order to obtain advanced technology,excellent talents,excellent brands and other high-quality resources.There is even a “Snake Swallow”model of overseas M＆A.“Snake Swallow” overseas M＆A are faced with many difficulties,among which financing is also a major problem.The financing scale is larger,the financing time is more urgent,so the financing difficulty is relatively high.If the financing problem is solved,it will help to promote the success of overseas M＆A of Chinese enterprises.Therefore,how to help Chinese enterprises to develop appropriate financing strategies for overseas M＆A financing is a problem worth discussing.1.Research purposeThe research purpose of this paper mainly includes the following two points:The first is to analyze the key factors of financing strategy decision of “Snake Swallow” overseas M＆A.Enterprises need to consider many factors in the decisionmaking process of “Snake Swallow” overseas M＆A financing strategy,such as the characteristics of capital demand,financing environment,financial situation of enterprises and so on.Financing decision-making is a scientific decision-making process.First,analyze the capital needs,choose the payment method,and then determine the financing method.The influencing factors of each step are analyzed to make each step more perfect,so as to make a reasonable financing decisionThe second is to analyze the implementation effect of financing strategy of overseas M＆A.Different financing strategies for M＆A will have different effects.Because different financing methods have different characteristics and have different effects on enterprises.Different combination of financing methods will also have different effects.This paper will take Wing Tech’s overseas acquisition of Nexperia Holding B.V as an example to analyze the implementation effect of its acquisition financing strategy.2.Main contentsThis paper adopts the research method of combining theoretical analysis and case analysis,and selects the case of Chinese enterprise Wing Tech’s cross-border M＆A of Nexperia Holding B.V to study the financing strategy of Chinese enterprises’ “SnakeSwallow” M＆A.First of all,through literature research,this paper classifies and sorts out the research related to the “Snake Swallow” overseas M＆A financing strategy,laying a foundation for the following research.Then,based on the analysis of the difficulties of “Snake Swallow” overseas M＆A financing and the advantages and disadvantages of different payment methods and financing methods,the key factors of financing strategy decision-making of overseas M＆A are analyzed theoretically.Finally,the case analysis method is used to systematically study the financing strategy of “Snake Swallow” overseas M＆A.Analyses the financing strategy of Wing Tech’s decision-making process,including analyzing its funding needs and factors influencing the choice of payment method and financing way.Then the paper evaluates its financing strategy,analyzes the highlights and deficiencies of the financing strategy,as well as the existing risks,in order to learn from its experience and provide reference for other Chinese enterprises to finance overseas M＆A.In the three-step merger and acquisition process,Wing Tech adopted the mixed payment method and used multiple financing methods of forming the buyer group,using merger and acquisition loan,overseas syndicated loan,share replacement,share issuance and supporting fund raising.By making full use of the advantages of the combination of the mixed payment method and the diversified financing method,the company successfully completed the financing of the “snake swallow” overseas acquisition.Although the financing strategy is cleverly designed,there are also some problems,such as poor internal financing capacity,too much issuance of new shares,and more traditional financing channels.On the basis of the case in this paper,the following suggestions are put forward for the development of financing strategies for overseas M＆A of Chinese enterprises: adopt mixed payment method,enhance internal financing ability,combine various financing channels,adopt more innovative financing methods,and consider strategic investors when introducing equity.3.Reaearch contributionsFirst,analyze and sort out the difficulties in financing “Snake Swallow”overseas M＆A of Chinese enterprises.Due to the characteristics of large scale and tight time demand for M＆A funds,and some unfavorable factors in China’s current overseas M＆A financing,such as single payment method,inflexible financing method,and insufficient participation of intermediary institutions,all of these bring obstacles to the overseas M＆A financing of Chinese enterprises.Through the analysis of these financing difficulties,in order to better formulate financing strategies.Secondly,the paper analyzes and sorts out the influencing factors of each step of the decision-making process of financing strategy.The decision of financing strategy is a scientific process.First,analyze the capital demand,then choose the payment method,and then determine the financing method.Each step is crucial to the formulation of financing strategy,so this paper will comb the influencing factors of each step respectively,so as to better formulate financing strategy.