Analysis on Risk of Debt of Leveraged Financing in Cross-border M&A

The reform and opening up and economic globalization have enabled China’s economy to achieve rapid growth, which directly promoted the upgrading of China’s national consumption capacity and the modernization transformation of various industries. Under the background of this era, most domestic enterprises have carried out cross-border mergers and acquisitions and made a lot of advanced achievements. Effectively dealing with risk of debt in the process of leveraged financing of cross-border M&A can not only improve the efficiency of cross-border M&A, but also promote the transformation and upgrading of enterprise production and operation activities. Based on the relevant research results and years of practical experience, this paper will discuss the common ways, specific risk influencing factors, main risk of debt and optimization measures of leveraged financing for cross-border mergers and acquisitions from various aspects. Finally, I hope that through the analysis and discussion of this paper, I can provide reference for related enterprises.