Who knows how companies should face mergers and acquisitions?

Mergers and acquisitions are also a way of growth. If we talk about mergers and acquisitions in a broad sense, in fact, through the integration of your various technologies or resources, it can actually be understood as mergers and acquisitions in a broad sense. Generally, we use mergers and acquisitions as two tools: One is that mergers and acquisitions are now a channel for investors to exit. They are very popular now and are becoming more and more popular. Let’s describe it from this perspective. Second, mergers and acquisitions are actually a model for corporate growth. The best outcome for some companies when they are merged and acquired. From the perspective of M&A companies, why some industries or some companies cannot attract the interest of investment institutions? There may be ceilings in business models or industry choices, so this Even if an enterprise develops for a long time in the future, it often finds that there is a ceiling in its turnover and growth. In this case, the best way out is to be acquired. Sometimes some markets are easy to break into, and everyone rushes in. In fact, when you actually start it, you will find that your idea of ????starting a business was probably caused by some accidental market demand, rather than the actual business model. To grow bigger, you have to find a big tree to lean on. Entrepreneurs all have dreams, but there are actually very few people who can really be like Bill Gates or really be able to build such a large-scale enterprise. Many industries have ceilings, and you cannot be among the top few in the industry, because Chinese people always seem to prefer to be the head of a chicken rather than the tail of a phoenix. Many small and medium-sized enterprises may only achieve such a large turnover in their lifetime, but in a Professional fields will be very sophisticated, but companies in China are relatively small. Everyone wants to go public in the end, but in fact going public is not the only way out. Many entrepreneurship can be divided into two categories. One is technology entrepreneurship, which starts from a specific product. The second possibility is the Internet. There is an idea and a new business model, but there are no core advantages and barriers. Many people may just have an order by accident, which prompted me to start a business, but you have to be objective. Analyze whether your business model can really become bigger. Of course, in some biomedical industries, being merged or acquired is a business model in itself. There are some giants in the foreign pharmaceutical industry. Because it requires a long research and development cycle, even if it wants to grow, it is difficult. It is a reverse model. Just get the drug out. Maybe I can sell a Phase III clinical approval document. I will launch the next one based on my advantages. Now we have many people like this who regard the merger and acquisition of enterprises as a business model. However, some industries are still established. I am simply talking about this. Another thing is that with the Internet, after some trends, it is actually getting easier to start a business. To be honest, the Internet is an asset-light model and does not require large investments. A quasi-monopoly has been formed in such an industry. , so if you want to hold on to such an industry, if you don't seize a very suitable time to exit and are simply paralyzed by temporary success, you may lose a lot of opportunities. Think more about whether your business model is sustainable and the changes in your company's valuation in the capital market. Know how to give up illusions. In fact, whether it is mergers and acquisitions, being acquired, venture capital or being venture capital, they are actually two sides of a silver coin, with some good and some bad. So when I say giving up illusions, I don’t just mean entrepreneurs, but also investors. It means that everyone must follow a business rule, how it is decided in business, then there are no exceptions, there are very few exceptions, so don’t have illusions. , these things include price, value, control strength issues, capital, and the final discovery is insurmountable. You must choose your path objectively. Finally, if you have time, I will briefly talk about some of the cases we have done recently. This is business management. Why is capital operation applied? Startups still stick to the idea of ????product management. It is relatively simple. I make a product, there is a cost, and I make money at the selling price.

Some companies make acquisitions just to supplement their own business shortcomings, or to directly eliminate potential competitors. You need to analyze these carefully. We must understand the different wills and operating methods of different capitals, so we must make appropriate choices. When running a business, you must not think about going public every day. Just like raising a son, when running a business, you must have the mentality of raising pigs. Once fattened, sell them and raise them again.