Industrial capital mergers and acquisitions: The purpose is to share the industrial profits of the target enterprise

Financial capital mergers and acquisitions: the purpose is to purchase and sell to obtain investment profits

Individual – Acquirer Who is the acquirer?

Leveraged buyout: The main financing for the acquisition comes from debt

Non-leveraged acquisition: the main funds for the acquisition are own funds

Individual – Acquirer Where does the acquirer’s money come from?

Friendly merger and acquisition: Both parties negotiate amicably to determine the terms of the merger and acquisition.

Hostile takeover: forced takeover

Individual - acquired party Does the acquired party agree?

Horizontal merger: both parties are in the same industry

Vertical mergers and acquisitions: mergers and acquisitions between companies at different stages of production and marketing

between individuals Acquiring party Acquired party

After the merger and acquisition, the enterprise obtains the "focus effect" (strategic goal focus)

Complementary advantages and sharing of corporate resources after mergers and acquisitions

Enhance work motivation and technological innovation within the company after the merger and acquisition

Failure to carefully analyze the potential costs and benefits of the target company, and too hasty mergers and acquisitions without reasonable management

Overestimating the attractiveness of the industry where the merger target is located and one's own management capabilities, thereby overestimating the potential benefits brought by the merger and acquisition

Don’t just look at how much you spent, but compare how much it’s worth with how much you spent.

After mergers and acquisitions, we are faced with the integration of strategy, organization, system, business, culture and other aspects.

Defend the host country Political Risk Measures

The development costs of high and new technologies have increased, and it is difficult for a single enterprise to pay independently. They must be shared through strategic alliances.

Establish strategic alliances and expand the density and speed of information transmission

Replace competition with cooperation and reduce the high cost of dealing with fierce competition

Resource sharing and complementary advantages can be achieved through strategic alliances

Diversification of business scope and expansion of business areas can be quickly achieved through strategic alliances

The above 1-5 can also be realized through mergers and acquisitions. However, the strategic alliance method does not require the integration of enterprises and can reduce coordination costs.

Joint venture

Mutual shareholding investment

Conducive to expanding the financial strength of enterprises Enhance the sense of trust and responsibility between both parties More conducive to long-term cooperation Strong control over the alliance

functional protocol