What are the financing issues of M A financing decisions?

The financing issues of the acquired enterprise are as follows:

1. The scale of funds is limited;

2. Insufficient loan financing from commercial banks;

3. Bond financing is blocked; Wait a minute.

1. What are the methods of debt financing?

Debt financing methods mainly include: private credit, commercial credit between enterprises, leasing, loans from banks or other financial institutions, and other methods. Bond financing is a type of direct financing, in which the department that needs funds directly goes to the market for financing, and there is a direct correspondence between the borrower and the borrower.

In indirect financing, lending activities must be carried out through financial intermediaries such as banks, and banks absorb deposits from the society and lend them to departments that need funds.

2. What are the financing options for state-owned enterprises?

The methods that SOEs can choose from to finance are:

1. Bank loans. Banks are the most important source of financing for enterprises.

2. Financing. **It has the characteristics of permanence, no maturity date, no need to return, and no pressure to repay principal and interest, so the financing risk is small.

3. Bond financing. Corporate bonds, also known as corporate bonds, are valuable bonds issued by enterprises in accordance with legal procedures and agreed to repay principal and interest within a certain period of time, indicating that there is a creditor-debtor relationship between the bond issuer and investors.

4. Financial leasing. Financial leasing is a combination of financing and financing, with the dual functions of finance and finance, to improve the financing efficiency of enterprises.

5. Internet financial platform.

3. What is the difference between equity financing and bond financing?

Difference Between Equity Financing and Bond Financing:

1. The characteristics are different. Long-term, irreversible, and unburdened are the characteristics of equity financing; The characteristics of debt financing are high return on capital and clear control.

2. The nature is different. Equity financing is a form of financing that recruits partners for the capital market at the cost of the dilution of the company's own equity. Debt financing is a way for enterprises to obtain loans from financial institutions through fixed assets and other resources of enterprises.

Article 172 of the Company Law stipulates that a merger of a company may take the form of a merger by absorption or a new merger.

The absorption of another company by one company is a merger by absorption, and the absorbed company is dissolved. The merger of two or more companies to create a new company is a new merger, and the parties to the merger are dissolved.

M&A is essentially an investment activity for the merging party (acquirer), and the premise for an enterprise to carry out investment activities is to finance the required funds. In the financing arrangement, it is necessary not only to ensure the total demand, but also to fully consider the cost of financing and the risk of financing.

Influencing factors of M&A financing: analysis of financing costs.

According to different financing**, financing can be divided into debt financing and equity financing.

1. Debt financing costs: Debt financing mainly includes long-term borrowings and bond issuance. Long-term borrowing has always been the main way for Chinese enterprises to carry out financing, the financing speed is fast, the procedures are simple, the financing cost is less, and the financing cost is mainly the interest of the loan.

Generally speaking, the interest rate on borrowings is lower than that on bonds. By issuing bonds to finance funds, a large amount of idle funds in the society can be gathered, and more funds can be raised than borrowing. At the same time, convertible bonds can be issued according to market conditions to increase financing flexibility.

For debt financing, the advantages are that the financing cost is lower, and the owner's control is guaranteed, and financial leverage benefits can be obtained. However, it will bear greater financial risks and affect the ability to raise funds in the future.

2. Cost of equity financing: Equity financing mainly includes common shares, preferred shares and retained earnings. The funds financed through equity financing constitute the enterprise's own capital, which does not have the problem of repayment at maturity, and the amount is not limited, and can increase the borrowing capacity.

But the cost is higher than debt financing.

Influencing factors of M&A financing: financing risk analysis.

1. Risk analysis of financing methods: financing risk is an important factor in corporate financing, and when choosing financing methods, it is necessary not only to consider the cost, but also to reduce the overall risk. On the one hand, the means of reducing financing risk should choose equity financing methods with low financing risks, and on the other hand, the use of more flexible financing methods, such as convertible bonds and convertible preferred shares, can also be considered.

2. Risk analysis of financing structure: The huge amount of funds required for mergers and acquisitions of enterprises is difficult to solve by a single financing method, and there are still financing structure risks in raising funds for mergers and acquisitions through multiple channels. The financing structure mainly includes the structure of debt capital and equity capital, and the structure of medium and long-term debt and short-term debt of debt capital.

Rationally determining the capital structure is to maintain an appropriate ratio between debt capital and equity capital, and to rationally match long-term and short-term debts, so as to reduce financing risks.

Influencing factors of M&A financing: analysis of financing methods.

1. Indirect financing analysis: Indirect financing is the financing of funds through banks or non-bank financial institutions. Its main forms are:

Bank loans, purchases of businesses** by banks or non-bank financial institutions, or other forms of investment in businesses. Indirect financing costs are relatively low and fundraising is fast, but generally limited in quantity. It is difficult to meet the funds required for mergers and acquisitions, and it is more constrained in the country where we are envious.

It is the most convenient way to raise money, but the amount is limited. External financing refers to the raising of M&A funds by enterprises through the capital market through the issuance of valuable ** and other forms. This method is conducive to making full use of idle funds in society, and the amount of funds raised is generally larger, but the cost is relatively high, and it is limited by the amount of issuance.