Is the form of mergers, acquisitions and reorganization of listed companies good or bad?

According to the general practice of asset restructuring of listed companies in my country, M&A and reorganization of listed companies can be summarized into four main forms: mergers and acquisitions, equity transfer, asset divestiture and asset replacement.

1. Mergers and acquisitions.

Commonly known as corporate mergers and acquisitions, it can not only integrate internal and external resources of the enterprise, generate economies of scale, reduce market transaction costs, expand market share, but also adopt diversified business strategies and reduce operating risks.

2. Equity transfer.

Equity transfer refers to the act of the acquiring company accepting part of the equity of a listed company in accordance with the Equity Transfer Agreement, thereby becoming a shareholder or even a controlling shareholder of the listed company.

3. Asset divestiture.

Asset divestiture is the separation of non-productive and non-operating assets from the listed company entity, and is generally borne by the parent company of the listed company.

This is one of the most common methods to increase the profits of listed companies, mainly by stripping the listed company of non-performing assets and transferring them to the parent company or other subsidiaries of the parent company.

4. Asset replacement.

Asset swap refers to the exchange of assets between listed companies and other companies to improve asset quality.

In the Chinese securities market, such transactions mainly occur between related parties. This is a common method used by listed companies, especially some listed companies whose main business is suffering losses or is in trouble.

Is mergers, acquisitions and reorganization of listed companies good or bad?

1. Asset reorganization separates assets that are not suitable for entering listed companies (mainly stripping off non-performing assets), while introducing new excellent assets to increase capital profit margins; some asset reorganization weakens or changes the equity of the original major shareholders and reduces related transactions;

You can also enter new business areas and avoid competition in the same industry.

2. The essence of mergers and acquisitions is a rights transfer behavior made by various power subjects based on the institutional arrangements made by the enterprise's property rights in the process of corporate control rights.

M&A activities are carried out under certain property rights system and enterprise system conditions.

In the process of mergers and acquisitions, one or part of the rights holders obtains corresponding benefits by transferring the control rights of the enterprise, while another part of the rights holders obtains this part of the control rights by paying a certain price.

3. The process of corporate mergers and acquisitions is essentially a process in which the subject of corporate rights is constantly changing.

In fact, mergers and acquisitions have reorganized some non-performing assets, which is good for the company, otherwise there will not be waves of mergers and acquisitions, and mergers and acquisitions are also good for investors.

After mergers and acquisitions, the company can adjust its asset structure and develop in a favorable direction.

4. Establishing a buyout fund is generally beneficial.

The difference between buyout funds and other types of investments is that venture capital mainly invests in entrepreneurial companies, while mature companies choose buyout funds; other private investors in equity are not interested in company control, while buyout funds aim to gain control of the target company.

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