What should I pay attention to when buying equity?

Acquisition refers to an economic behavior in which a company obtains a certain degree of control over other companies through property rights transactions in order to achieve certain economic goals.

Acquisition is generally divided into equity acquisition and asset acquisition. Equity acquisition refers to the acquisition with all or part of the equity of the shareholders of the target company as the acquisition target. After the acquisition is completed, the legal person qualification of the target company may not necessarily die out. When the acquirer is a company, it means that the target company becomes a subsidiary of the acquirer.

Enterprises to prevent the acquisition of equity in the following ways:

1. Acquisition is an economic behavior, which is not necessarily unfavorable to the development of the target company, and can achieve a win-win situation for both the acquirer and the target company; Secondly, in order to prevent the enterprise from being acquired by equity, shareholders should properly manage and operate the enterprise and promote its healthy development.

2. Equity acquisition is just a way of acquisition. Enterprises should comprehensively consider the advantages and disadvantages of equity acquisition for enterprise development, and don't blindly understand that equity acquisition must be unfavorable for enterprise development.

Extended data

Procurement is divided by payment method:

1. Buy assets in cash.

Buying assets in cash refers to the acquisition company buying assets of the target company in cash in order to control the target company.

2. Buy stocks in cash.

Buying shares in cash refers to the acquisition company buying shares in the target company in cash to control the target company.

3. Buy assets with stocks.

The acquisition company issues its own shares to the target company in exchange for the assets of the target company. Generally speaking, the acquisition company agrees to assume the debt responsibility of the target company, but in some cases, the acquisition company only selectively assumes part of the debt responsibility of the target company.

4. Share for share.

The acquiring company can issue shares directly to the shareholders of the target company in exchange for the shares of the target company. Generally speaking, at least until the acquiring company can control enough stocks needed by the target company.

5. Use assets to buy shares or assets.

The acquisition company uses assets to buy assets or stocks of the target company to control the target company.

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