? ?(1) Flexible transaction structure.
Trusts have strong flexibility at the transaction level, and can participate in various acquisition models by issuing trust plans, establishing merger and acquisition funds, cooperating with external institutions, etc., and can adopt structural designs such as a combination of stocks and bonds, and priority and subordinated structures.
, reasonably amplify leverage, flexibly allocate funds, and effectively control risks.
(2) Structured financing experience.
In the past few years, trust companies have been deeply involved in the real estate industry and have accumulated rich experience in mezzanine financing and structured financing. This experience can be transferred to non-real estate fields and can be started from the merger and acquisition integration business in the real estate industry.
(3) Ability to invest large amounts of funds.
Trust companies can raise funds in the form of collective fund trusts or single fund trusts. The fundraising methods are flexible and the procedures are simple. They can also raise large amounts of funds in a short period of time by amplifying leverage and invest in M&A projects. When banks have quota limits for M&A loans,
, trusts can form misaligned competition.
(4) Privacy.
Under certain circumstances, a trust can help the acquirer implement the acquisition without exposing the principal.