What are the ways of enterprise merger and acquisition, including these merger and acquisition methods?

For its own better development, the company will expand overseas, and the common way is mergers and acquisitions. What are the ways of merger and acquisition?

What are the ways of company merger and acquisition?

According to the general practice of assets reorganization of listed companies in China, mergers and acquisitions can be divided into four main forms: mergers and acquisitions, equity transfer, asset divestiture and asset replacement.

1. M&A. Merger and acquisition of enterprises can integrate their own resources and external resources, form scale effect, reduce production transaction costs and expand market share. And can reduce the risk of their own operations after diversified business strategies.

2. Equity transfer. Equity transfer means that M&A company receives part of the equity of listed companies according to the equity transfer agreement. At this time, the person who buys the equity is the shareholder of the 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 listed company entity, which is usually borne by the parent company. This method is common in the operation of listed companies. Usually transferred to the parent company and or other subsidiaries of the parent company.

4. Asset replacement. As the name implies, asset exchange is an asset transaction between listed companies and other companies. In the China stock market, it is also a common means to trade mainly with its related parties.

M&A refers to the merger of two or more companies into one company. The news of M&A company often appears in the stock market, which is also one of the news that investors pay attention to. Generally speaking, mergers and acquisitions will have an impact on stock prices, so what is the impact?

1. It is rumored that the merger and acquisition of the company will affect the company's share price and lead to an increase in its share price.

In the stock market, the share prices of listed companies with rumors of mergers and acquisitions will be affected by the situation, and the share prices of most companies will show an upward trend. There are two main reasons for this: 1. Investors have high expectations for their high profits after the merger. Some investors deliberately speculate to make the stock price rise. If it weren't for the hype surrounding the merger, I'm afraid the share price wouldn't rise so much.

2. Before the announcement of M&A, the stock price increased greatly.

Before the merger is announced, the stock price will rise, and then after the announcement, the stock price will slowly fall, and the rate of decline may be faster and faster. The reason is this. Before the merger was announced, some employees and related personnel of the company inadvertently revealed the news, and then the market funds would speculate on the company's stock to raise its price. After the merger is announced, it will sell the company's shares as soon as possible, make huge profits and pass on the risks to retail investors.

3. The strength of M&A enterprises and their industries has an important influence on their stock price fluctuations.

Generally speaking, the stronger the M&A enterprise is, the better the industry is, and the more likely the M&A event will lead to a stock price increase, and vice versa.

Many investors think that the merger and acquisition of the company will definitely make the stock price rise, but this may not be the case. Due to the speculation of funds and the fundamental reasons of M&A, the share price of M&A will fall after the announcement, so investors should make a detailed analysis.