How To Solve The Financial Difficulties Of M & A Enterprises

There are three factors that cause the three major causes of financial management in enterprises. What are the ways and forms of expression? Management consulting experts say, "excellent financial systems: beauty experts, anti-virus tools, sharp knives, special money making forces, safe firewalls, and stockholders' backyard."

At present, due to the trend of the development of enterprise groups, the traditional off balance sheet financing method, which is mainly based on financial leasing, 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.

1) mutual secured financing.

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.

2)

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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 certain member enterprises, and then pferred to other member enterprises. That is to say, the capital pfer unit pfers the debt burden to the financing unit, so that the asset management unit maintains a good capital structure and meets the needs of production and operation.

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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 that have debt and debt relationship, can realize the adjustment of the local capital structure through the right of debt conversion. The two is that the member enterprises or parent companies of the external liabilities can make use of the power of the headquarters or group to manage the banks or others.

The debt is converted into equity capital of the bank or creditor in the enterprise group, thus realizing the adjustment and optimization of the capital structure as a whole.

4) can not reflect the value and institutional arrangements of some important resources.

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.

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.