As an important part of enterprise capital management, asset restructuring of enterprises can strengthen their own strength, realize the optimal allocation of social resources and improve the efficiency of economic operation.
(1) M&A, an important way of asset restructuring, can quickly realize production concentration and operationexpansionin a short period of time;
(2) It can reduce the excessive competition of the same product and improve the efficiency of industrial organization;
(3)Itcan reduce capital expenditurecompared to start a new business;
(4) It is beneficial to adjust the product structure, strengthen the advantages, and promote the adjustment of product structure, speed up the formation of the pillar industry;
In summary, there are threecommontypesof M&A in the market:
According to experiences, M&A can help companies achieve high-speed development while also could easily lead to enterprise value damage, debt burden increase and even bankruptcy.