According to the general practice of asset reorganization of listed companies in China, M&A of listed companies can be summarized into four main forms: M&A, equity transfer, asset divestiture and asset replacement.
1. M&A. Commonly known as enterprise merger and acquisition, it can not only integrate internal and external resources of enterprises, produce scale effect, reduce market transaction costs and expand market share, but also adopt diversified business strategies to reduce business risks.
2. Equity transfer. Equity transfer refers to the behavior that M&A company acquires part of the equity of listed company according to the equity transfer agreement, thus becoming a shareholder or even a controlling shareholder of listed company.
3. Asset divestiture. Asset divestiture is to divest the unproductive and non-operating assets in the main body of a listed company from the entity of the listed company, which is generally borne by the parent company of the listed company. This is one of the most commonly used methods to improve the profits of listed companies, mainly by stripping off the non-performing assets of listed companies and transferring them to the parent company or other subsidiaries of the parent company.
4. Asset replacement. Asset replacement refers to the exchange of assets between listed companies and other companies to improve the quality of assets. In China stock market, this kind of transaction mainly occurs between related parties, which is a common means for listed companies, especially those whose main business is losing money or in trouble.
Is the merger and reorganization of listed companies good or bad?
1. Assets reorganization separates assets that are not suitable for entering listed companies (mainly divesting non-performing assets), and introduces new excellent assets to improve capital profit rate; Part of asset restructuring weakens or changes the original major shareholder's equity and reduces related party transactions; You can also enter new business areas and avoid competition with the same industry.
2. The essence of M&A is a kind of right transfer behavior made by various power subjects according to the institutional arrangement of enterprise property rights in the process of enterprise control right movement. M&A activities are carried out under certain conditions of property rights system and enterprise system. In the process of M&A, part or part of the right holders get corresponding benefits by transferring the control right of the enterprise, while another part of the right holders get this control right at a certain cost.
3. The process of enterprise M&A is essentially the changing process of the subject of enterprise rights. In fact, mergers and acquisitions have reorganized some bad assets, which is good for the company. Otherwise, there will be no wave of mergers and acquisitions, and mergers and acquisitions are also good for investors. After the merger, the company can adjust its asset structure and develop in a favorable direction.
4. It is usually beneficial to establish M&A fund. The difference between M&A fund and other types of investment is that venture capital mainly invests in entrepreneurial enterprises, and mature enterprises choose M&A fund; Other private investors are not interested in the control of the company, and the purpose of buying funds is to gain the control of the target company.
Seeing this, everyone should know whether the form of mergers and acquisitions of listed companies is good or bad. Want to know more about investment knowledge, please pay attention to us!