How to improve M&A loans in China : a comparison and risk management angle
Author(s)
Liu, Xiaohua, S.M. Sloan School of Management
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Alternative title
How to improve mergers and acquisitions loans in China : a comparison and risk management angle
Other Contributors
Sloan School of Management.
Advisor
Mark P. Kritzman.
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China is actively leading the Asia-Pacific M&A market with an ascending trend of transaction volume and $770 billion transaction volume in 2016. This trend makes financing fundamental, which affects acquisition scale, structure, consequence and even post-acquisition integration. M&A loans, launched in 2008, have become the most utilized pattern of M&A financing in China. Though it develops fast, multiple problems exist in practice. My research focuses on how to improve M&A loans by solving these problems. To compare the practice in the US and China's M&A lending markets, I explained the four main business models of M&A loans in China and illustrated the bank debt financing in LBO deals in the US. Based on the comparison, I maintained that the main reasons for the defects lay in both macro and micro levels and accordingly made suggestions. Especially, improvement in risk management would allow confidence in business development and product innovation. Thus the problems of credit preference and product homogeneity could be eased. I illustrated utilization of multiple models with a real case. The study also includes empirical and scenario methods in analysis.
Description
Thesis: S.M. in Management Studies, Massachusetts Institute of Technology, Sloan School of Management, 2017. Cataloged from PDF version of thesis. Includes bibliographical references (pages 59-62).
Date issued
2017Department
Sloan School of ManagementPublisher
Massachusetts Institute of Technology
Keywords
Sloan School of Management.