Get more financial support and lose independence. The advantage of being acquired by listed companies is that listed companies usually have more funds and resources. After being acquired by them, the acquired companies can get more financial support, which will help expand their business scale and enhance their competitiveness. The disadvantage is that after being acquired by a listed company, the acquired company will lose its independence, be controlled and influenced by the listed company, and face personnel changes, including changes in executives and employees.
Before being acquired by a listed company, it is necessary to conduct full due diligence to understand the financial status, governance structure and business model of the listed company, and to clarify the rights and obligations of both parties, including the purchase price, business adjustment and personnel changes.