The most direct benefit of company acquisition is that it can make use of the resources of large companies, including human resources, material resources, relationships and other resources to adjust its own capital structure and enterprise structure, thus improving its operating conditions. At the same time, we can also use the reputation, brand and image of large companies to consolidate the market position. Although its autonomy is gone, its profits can be increased.
legal ground
Article 172 of the Company Law of People's Republic of China (PRC) * * * The merger of companies can adopt absorption merger or new merger. A company absorbs other companies for merger, and the absorbed company is dissolved. The merger of two or more companies to form a new company is a new merger, and the parties to the merger are dissolved.