Abstract：The article derivates Geely’s financing problems through an introduction about the background of the business that Geely acquired Volvo. The difficulty in financing, which has increasingly become one of the most difficult problems at the present stage of the development of private enterprises, has severely restricted its development. The article elaborates the financing process of the acquisition of Volvo from the two aspects of the raised purchasing funds and the raised operating funds. Around the financing process, the article analyses its related financing behaviors based on 2008 – the third quarter of 2012 consolidated financial reports of the Geely Group, including overall financing situation, internal financing, external financing, the Geely’s model compared with the Pecking Order Theory, in order to discuss how Geely resolve the financing difficulty by analyzing its related financing behaviors. Combined with the management risk of Geely faced in the recent years, the article points out the problem in its financing process and puts forward some relevant solutions through the analysis of Geely’s financing structure and financial indicators which compared with other domestic car companies. Combining the above analysis, this paper provides some relevant inspirations and financing models which are reasonable and efficient on the point of view of the private enterprise.
Keywords: Private enterprise; financing difficulty; Geely; financing analysis; financing inspiration