1, the transfer of control can reconfigure the business resources of both parties to the merger, which may achieve many effects such as scale operation, expanding market share, reducing investment risks and improving enterprise competitiveness.
2. The investment will pay off quickly.
3. It is easy to enter new fields and overcome entry barriers.
First, the role of securities listing
1, the listing of securities can expand the social influence of listed companies, improve their visibility and reputation, enable them to raise capital on more favorable terms and expand their economic strength.
2. For investors, because listed companies must regularly announce their operating and financial conditions, it is beneficial for investors to make correct investment decisions.
3. Listing provides a continuous market for securities. The more liquid securities are in the market, the more willing investors are to buy them. The price of securities trading is generally reasonable because of bidding, which is conducive to reducing the investment risk of investors.
Second, what is the main content of M&A motivation?
M&A's motives mainly include the following contents:
1, expand the scale of production and operation, and reduce costs;
2. Increase market share and improve the strategic position of the industry;
3. Get cheap enough raw materials and labor to enhance the competitiveness of enterprises;
4. Implement the brand management strategy, improve the visibility of enterprises, and obtain excess profits;
5. In order to realize the company's development strategy, advanced production technology, management experience, management network, professionals and other resources are obtained through mergers and acquisitions.
According to the regulations, the merger of companies can take the form of 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.
Third, the significance of enterprise merger
The significance of enterprise merger mainly includes the following aspects:
1.M&A can bring economies of scale to enterprises. Enterprises can supplement and adjust assets through mergers and acquisitions to achieve the best economic scale and reduce production costs; Mergers and acquisitions also make it possible for enterprises to concentrate on producing a single variety in one factory under the premise of maintaining the overall product structure, thus reaching the level of specialization; Merger can also solve a series of problems brought by specialized production, make all production processes cooperate organically and produce economies of scale.
2. M&A can bring market leading effect to enterprises. Through the vertical merger of upstream and downstream related enterprises, enterprises control a large number of key raw materials and sales channels, effectively control the activities of competitors, and improve the entry barriers and differentiated advantages of enterprises in their fields. Through horizontal merger activities, enterprises can increase market share, form economies of scale and become market leaders. Dominant enterprises can implement large-scale and effective M&A strategy, so as to expand the scale of enterprises, increase market share, improve profit margins, enhance competitiveness, and increase market control by virtue of the reduction of competitors, thus becoming market leaders.
3. It can realize the optimal allocation, enjoyment and utilization of resources.
4. It can make enterprises realize diversified development at the lowest cost. Through merger, enterprises can expand into new areas while maintaining their original business areas.
legal ground
Article 3 of the Measures for the Administration of the Acquisition of Listed Companies stipulates that the acquisition of listed companies and changes in related rights and interests must follow the principles of openness, fairness and impartiality. The information disclosure obligor in the acquisition of a listed company and the change of relevant shares' rights and interests shall fully disclose their rights and interests in the listed company and their changes, and perform legal obligations such as reports and announcements in strict accordance with the law. Before the relevant information is made public, it is obliged to keep it confidential.
The information reported and announced by the information disclosure obligor must be true, accurate and complete, and there shall be no false records, misleading statements or major omissions.