What does 1.M&A loan mean?
The so-called M&A loan refers to the local and foreign currency loans issued by commercial banks to M&A enterprises or holding subsidiaries of M&A companies to pay the consideration of M&A shares. Ordinary loans are the best in the order of repayment, but if loans are used for equity acquisition, debts can usually only be repaid through equity dividends.
2. What are the application conditions for M&A loan?
1. The acquirer's enterprise operates in compliance with laws and regulations, with good credit status, leading technology in the industry and leading market share, which has absolute advantages for the target enterprise.
2. The purpose of the acquirer must be to acquire or actually control the target enterprise that has been established and actually operated, rather than only acquiring part of the equity or assets of the target enterprise without actually controlling the target enterprise.
3.M&A transactions are legal and compliant, involving national industries, industry access, anti-monopoly, transfer of state-owned assets, etc. , and shall, in accordance with the policy requirements of applicable laws and regulations, be approved by relevant parties and go through relevant procedures.
4. It has high industrial relevance or strategic relevance with the target enterprise, and the acquirer can acquire strategic resources such as R&D capability, key technologies and processes, trademarks, franchising, supply or distribution network of the target enterprise through mergers and acquisitions, so as to improve its core competitiveness.
5. All the self-raised funds have been put in place.
6. Provide guarantees sufficient to cover M&A loan risks, including but not limited to asset mortgage, equity, mortgage, third-party guarantee and other forms of guarantee that meet legal requirements.