Corporate Restructuring and M&A (Merger and Acquisition)

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.