What are the ways for large enterprises to invest in small and medium-sized enterprises?

5 1 experts from the Fund Project Network answer your questions:

1. Fully acquire the company's equity.

The comprehensive acquisition of the company's equity is a comprehensive acquisition of small and medium-sized enterprises. Investors will buy all tangible and intangible assets, technologies and products of the company from entrepreneurs of small and medium-sized enterprises at negotiated prices, and bear all liabilities of the enterprise.

2. Partial acquisition of the company's equity (holding)

If the shareholders of small and medium-sized enterprises are technology developers themselves, large enterprises can also acquire needed technologies and products through partial acquisition of small and medium-sized enterprises, and new products and technologies can be quickly incorporated into the development, production and sales sequence of large enterprises and become a part of large enterprises. Entrepreneurs of the acquired enterprises, especially technology holders, still hold shares in the company and still control and manage the company. Their future is to develop with the company in the future and enjoy the benefits brought by the company's development with big companies.

3. Partial acquisition (non-holding)

As a company, entrepreneurs generally do not want to lose control of the company, nor do they want to exchange control for the right to use funds and the right to develop the company. They only sell part of their shares in exchange for a relative amount of capital use rights.