Analysis of the Impact of Directional Convertible Bonds on Mergers and Acquisitions of Technology-Based Enterprises

Abstract

Against the backdrop of intensifying global competition in the technology industry and accelerating industrial upgrading, mergers and acquisitions have become the core pathway for technology-based enterprises to integrate innovation resources, overcome technological bottlenecks, and expand market share. However, the inherent characteristics of technology-based enterprises lead them to face severe financing constraints over the long term. This paper constructs a theoretical analysis framework of “instrument design, signal transmission, performance improvement” and analyzes the case of 3PEAK’s acquisition of ICM-Semi, revealing the mechanisms through which directional convertible bonds reduce financing costs, alleviate equity dilution, and balance transaction risks, which provides an in-depth discussion on the impact path and effect of directional convertible bonds on merger and acquisition performance. The research in this paper holds significant theoretical value and policy implications.