Acquisition means that a company gains a certain degree of control over other companies through property rights transactions, and acquisition is a form of merger and acquisition; M&A refers to the merger of two independent legal persons and the merged company. Through merger, the legal person status of the merged company dies, and its property, creditor's rights and obligations are generally transferred to the merged company. The merged company needs to go through the company change registration accordingly. It is good, and the acquisition shows that it is valued.
If a listed company is acquired, what will happen to its stocks?
If the purpose of the acquisition is 100% holding and privatization, then the acquirer should make a tender offer; If only part of the shares of listed companies are acquired, other investors can still hold shares.
Why do big companies always like to buy small companies?
Large companies directly acquire a startup company instead of starting the same project independently for the following reasons:
1, it takes time
In this competitive era, it is not so easy to successfully start a project. Each project needs a different length of lead-in period, and all projects need to cross Death Valley. A lot of accumulation is needed in the early stage. It all takes time. It is difficult for a big company to have the patience to start a project from scratch and accumulate it slowly. Sometimes, the market won't give them too much time, and many powerful enemies are around. They prefer to solve problems directly and quickly.
2. It may not succeed in the end.
The success of every project needs the right time. The greater the success, the greater the need for great opportunities. And the timing is not to say that there is a huge opportunity, but it is also rare. Every successful project also has many accidental factors and luck elements in it. Now even if you give successful entrepreneurs better conditions and resources than when they started their business, they can't replicate their success. This is because there are many accidental factors and luck in the initial success, which is the similarity of various successes. All successful entrepreneurs are well aware of this. Therefore, the direct acquisition of a successful startup by a large company can avoid the risk of failure due to timing, accidental factors and bad luck.
3. The goal is people or resources.
Some acquisitions are for projects, while others are for people and resources of the target company. People are the key to the success of any project. And some startups, people are their best assets. And resources are one of the essential elements for the success of entrepreneurship. If the resources owned by a startup company are exclusive, scarce and exclusive, then these resources are more valuable. These startups with human and resource value may become the acquisition targets of large companies.