Research On The Financing Strategy Of Corporate Cross-border M&A

In recent years,cross-border mergers and acquisitions have gradually become the best way for enterprises of our country to realize their internationalization strategies,explore overseas markets and obtain advanced technologies.The number and scale of cross-border mergers and acquisitions are increasing year by year.The consideration for mergers and acquisitions sometimes reaches tens of billions of US dollars.The financing often affects the final performance of mergers and acquisitions,which makes enterprises pay more attention to the arrangement of financing links.How to raise M&A funds smoothly by means of reasonable financing arrangement is a key issue for Chinese enterprises in the process of cross-border M&A.Firstly,the paper elaborates the research status and theoretical basis of cross-border M&A financing.Secondly,it introduces the financing methods that enterprises can choose in cross-border M&A and their respective characteristics.In the part of case,the author introduces Wingtech's M&A of Nexperia,which is a typical cross-border M&A of Nexperia.After a brief introduction of the M&A background,the author analyzes the financing decision-making process from multiple perspectives,then focuses on the analysis of diversified financing methods and ingenious transaction design in the process of implementing financing strategies,and evaluates the financing effect of this M&A from three aspects of capital timeliness,financing risks and financing costs.Finally,the author summarizes some experience that can be used for reference by other enterprises in the process of designing and implementing financing strategies.The following conclusions are drawn through the study: Firstly,Wingtech successfully completed the fund-raising for the M&A at a lower financing cost under the premise of risk control,the financing strategy adopted by it is successful,and the financing experience is worthy of reference for other M&A enterprises in the future;Secondly,the financing structure is not invariable,and when the time span of the M&A is large,the financing structure shall be timely optimized and adjusted according to the enterprise's own conditions and market conditions;Thirdly,reasonable transaction design can not only ease the pressure of financing and payment,improve the efficiency of the M&A,but also break through the existing financing obstacles,and give play to the financing potential of the enterprise.Fourth,raising funds is not the only purpose of M&A financing,enterprises should pay attention to the choice of financing targets and their differential interests.