What are the advantages of stock exchange merger and acquisition?

Advantages of stock exchange merger:

1.M&A enterprises do not need to pay cash to the target enterprises, which greatly relieves the working capital pressure of M&A enterprises. Effectively reduce the financial pressure of M&A enterprises and reduce the cost of M&A. ..

2. When the target company has tax losses in the M&A transaction of the stock exchange, M&A enterprises can deduct tax losses from their daily profits, which is of great significance to protect the M&A capital surplus and reduce the tax burden. In addition, after the completion of the stock exchange merger and acquisition transaction, the seller obtains the shares of the other company, not cash or assets, so he only needs to pay taxes when realizing the realization of the shares he holds, which is beneficial to the tax planning of the enterprise by delaying the time of revenue recognition.

3. After the acquisition transaction is completed, the target company is merged into the merged company, but the shareholders of the target company still retain the owner's equity and can share the added value realized by the merged company.

Tips: The above information is for reference only.

Reply time: 2022-0 1- 17. Please refer to the latest business changes announced by Ping An Bank in official website.