In the fierce market competition, enterprises can survive only by continuous development. In general, enterprises can develop through internal investment and mergers and acquisitions. Compared with the two, mergers and acquisitions are more efficient, mainly in the following aspects:
1, M&A can save time;
2.M&A can reduce the risk of entry barriers and enterprise development;
3.M&A can promote the transnational development of enterprises.
The type of M&A strategy has an influence on the cultural integration model. The common types of mergers and acquisitions are horizontal mergers and acquisitions, vertical mergers and acquisitions and mixed mergers and acquisitions.
1, horizontal merger. Horizontal integration refers to being in the same industry. Mergers and acquisitions between enterprises that produce similar products or similar production processes. This kind of merger and acquisition is essentially the concentration of capital in the same industry and department, which rapidly expands the scale of production, increases market share and enhances the competitiveness and profitability of enterprises.
2. Vertical mergers and acquisitions. It refers to the merger and acquisition between enterprises whose production and operation processes are interrelated and closely related. Its essence is to achieve vertical integration through mergers and acquisitions between enterprises at different stages of producing the same product. Vertical M&A can not only expand the production scale and save the same cost, but also promote the close cooperation of all links in the production process, speed up the production process, shorten the production cycle and save transportation, storage costs and energy.
3. Mixed mergers and acquisitions. It refers to mergers and acquisitions between enterprises in different industrial sectors and different markets, and there is no special production technology connection between these industrial sectors. Include three forms:
(1) product expansion mergers and acquisitions, that is, mergers and acquisitions between enterprises that produce related products;
(2) Market expansion mergers and acquisitions, that is, in order to expand the competitive region, enterprises conduct mergers and acquisitions in other regions that produce similar products;
(3) pure mergers and acquisitions, that is, mergers and acquisitions between several enterprises that produce and operate unrelated products or services.
Mixed mergers and acquisitions can reduce the business risks brought by enterprises' long-term engagement in a certain industry. In addition, in this way, various resources such as technology and raw materials can be fully utilized.
In the process of enterprise merger and acquisition, it is very important to analyze the financial status of the target company, mainly to judge whether the financial statements provided by the target company truly reflect its financial status. This work can be entrusted to an accounting firm, and the focus of the audit mainly includes assets, liabilities and taxes. Review asset adaptation, and pay attention to whether the ownership of each asset is owned by the target company; Whether the asset valuation is reasonable; The recoverability of accounts receivable and the adequacy of bad debt provision; Inventory consumption; Whether the valuation of intangible assets is reasonable, etc. The audit of liabilities is mainly to find out whether there are any missing liabilities, and if there are, they should be submitted to the company for adjustment. In addition, it is necessary to know whether the previous taxes have been paid in full in time to prevent the acquisition company from being fined by the tax authorities after the acquisition.