Research Financing Strategy Of Ocerseas M&a In Auto Parts Industry

With the increasing demand of Chinese enterprises for expanding overseas markets and advanced technologies,overseas mergers and acquisitions have become the first choice for Chinese enterprises.Due to the rapid expansion of capital scale in M&A,every enterprise needs to carefully consider how to obtain enough capital to complete overseas M&A with the lowest cost through a series of ways and methods.In the automobile manufacturing industry,compared with the automobile manufacturing countries in the overseas developed countries,the resources available are limited and the approaches are limited,which is a certain gap,because China’s automobile development and capital market started relatively late.Due to the impact of traditional and modern new energy development in the past,auto parts related enterprises have been active in the domestic and overseas M&A market.With the emergence of a large number of M&A cases,it is a field worth studying how to use which financing method and strategy in the process to ensure the success of M&A activities.Usually,in the process of a merger and acquisition event,the success of financing transaction can only determine the completion of the merger,but the final success of the merger and acquisition still needs to be reflected in the late integration and business data,so the outcome of the merger and acquisition has time lag.This will inevitably affect and decide what kind of endogenous and exogenous financing strategies an enterprise uses.Different strategies will also have different impacts on later operation,so we need to study,summarize,learn and accumulate by lengthening the time line of enterprise M&A.This paper selects the M&A case of Takata Corporation acquired by Joyson Electronics,a private listed enterprise of auto parts industry,as the research object,and analyzes the case through literature reading,financial data analysis and inductive deduction,aiming at studying and summarizing its merits in M&A financing activities.By introducing strategic investment and borrowing syndicated loans,Joyson Electronics obtains the main M&A funds to set up the main M&A company to complete the acquisition.Combined with the industry background,this paper tries to analyze the influence of its strategy of continuous overseas mergers and acquisitions at the cost of continuing to increase corporate debt ratio on the choice of financing methods.Although this case is not a typical excellent financing strategy in overseas M&A,it is worth studying and learning from the special case of successful M&A of bankrupt companies.And put forward the possibility of a better way for this merger case and some suggestions for the future sustainable operation of the enterprise.Finally,it is hoped that the study and analysis of this case will provide some references for Chinese automobile related industrial chain enterprises or enterprises in more industries in overseas M&A financing,and provide some suggestions for M&A enterprises in the road of future integration operation.