How To Solve The Financial Difficulties Of M & A Enterprises

< p > at present, due to the trend of enterprise group development, the traditional off balance sheet financing method, which mainly uses financial leasing as the main means, is constantly innovating, with the help of financing at present.

It refers to the financial arrangements of group headquarters which make use of the overall advantage of resource aggregation and facilitating the financing to facilitate the financing activities of member enterprises, which are mainly as follows: mutual mortgage guarantee financing, mutual debt pfer, cash settlement or accommodation to solve the debt payment difficulties of member enterprises and so on.

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< p > 1) mutual mortgage guarantee < a href= "//www.sjfzxm.com/news/index_c.asp" > financing < /a >.

Debt financing of member enterprises is to provide collateral or guarantee through assets of other member enterprises or parent companies.

If mutual mortgage guarantees are resisted by creditors, enterprise groups can also adopt a flexible way to pfer the assets of other member enterprises to the accounts of financing units through internal adjustment so as to achieve the purpose of financing.

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< p > 2) < a href= "//www.sjfzxm.com/news/index_c.asp" > debt pfer < /a >.

Financing units are not directly used units. When the debt ratio is not suitable due to capital structure constraints, debt can be leveraged in the name of some member enterprises, and then pferred to other member enterprises. That is to say, the capital pfer unit will pfer the debt burden to the financing unit, so that the asset management unit not only maintains a good capital structure, but also satisfies the capital needed for production and operation.

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< p > 3) debt restructuring.

From the perspective of the whole group, the stock debt restructuring includes two levels: first, the debt restructuring between the parent company and the member enterprises within the group, in which the main form of debt to equity swap, that is, the member enterprises with debt and debt relationship, can realize the adjustment of the local capital structure through the way of the right of debt conversion. The two is that the member enterprises or parent companies of the external liabilities can convert the liabilities of the bank or other creditors into the capital stock of the bank or creditor in the enterprise group with the help of the management headquarters or group as a whole, so as to realize the adjustment and optimization of the capital structure in the whole body.

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< p > 4 can not reflect the value of some important resources and < a href= "//www.sjfzxm.com/news/index_c.asp" > institutional arrangement < /a >.

Corporate financial statements sometimes fail to reflect essential resources such as important human resources and franchise rights in modern enterprises' continuing operations.

The more noticeable problem is how the human resource pricing model and related incentive and restraint mechanisms can be reflected in the financial statements of enterprises, especially the issue of financial impact caused by the executive stock option system.

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< p > China's current situation is: on the one hand, Chinese enterprises are constantly improving their governance structure, approaching the modern enterprise system, the management is also in line with the enterprise reform, constantly introducing new laws and regulations, and revising the old laws and regulations to accelerate the process. On the other hand, the formulation of the accounting standards is far behind the reality.

Therefore, how to measure and confirm the cost of options, each enterprise goes its own way.

The option plan has a long span and a large amount of money. For the enterprises in the capital market, non-standard accounting treatment is bound to bring great risks to capital operation.

For the M & a side, we should be alert to the financial traps that may be caused by the established institutional arrangements in mergers and acquisitions.

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