First of all, what are the common forms of M&A and what are the differences between them?

1. Overall situation of the acquisition of the target company: The specific practice and consequence of the overall acquisition of the target company is that the acquirer merges the whole target company. After the acquisition is completed, the target company will no longer exist alone and become a part of the merging party. When accepting the target company, the merging party also accepts all assets (tangible and intangible), creditor's rights and debts, employees, etc. Target company, and then manage and operate according to its own management model.

2. Acquisition of the assets of the target company: Acquisition of the assets of the target company refers to the acquisition of part or all of the assets of the target company. In addition to tangible assets such as real estate, cash, machinery and equipment, raw materials and finished products, assets generally include intangible assets such as goodwill, patents, licenses, trade names, trademarks, intellectual property rights, trade secrets, confidential information, patents and patent rights. Processing technology, proprietary technology, etc. And enterprises acquired from the government. All permits, approvals, consents, authorizations, etc.

3. Acquisition of equity of the target company: Equity acquisition or equity acquisition of the target company is the most common form of corporate mergers and acquisitions. In this form, the buyer proposes to acquire a certain number of shares of the target company through agreement or compulsory acquisition. The target company survives as usual, and the creditor's rights and debts are difficult to handle. However, the ratio of shareholders to shareholders has changed, and the control right of the target company has changed and shifted. Therefore, business objectives, managers, business methods and business styles may change.

Extended data:

Basic principles of enterprise merger and acquisition

When an enterprise merges, it shall make a decision on the basis of benefit analysis. Its basic principle is that M&A's net income should generally be greater than zero, so that M&A can make a profit and realize the goal of maximizing shareholders' wealth. The calculation of M&A net income can usually be done as follows: First, the calculation of M&A income should be the balance of the overall value of the new company after the merger minus the overall value of the acquirer and the target company before the merger. Namely:

Revenue from M&A = value of new company after M&A-(value of acquirer before M&A+value of acquired party before M&A).

References:

Baidu encyclopedia-enterprise merger and acquisition