Industry Analysis: Enterprise Mergers And Acquisitions To Win Capital Attention

Many entrepreneurs want to realize their family business.

What should we pay attention to in merger and acquisition?

The acquirers generally retain certain shares in the merged enterprises as a minority shareholder, which is quite common.

There is a case in the retail industry, and the acquirer is also a company of a certain scale, but it has not done very well in controlling the financial power for a long time in the negotiation process and after the negotiation.

Moreover, we should make sufficient net worth investigation.

This is in the process of acquisition, try to find professional agencies to help.

Besides, lawyers will also play a very important role in this respect. In fact, no lawyer will lead to some unfavorable clauses in the contract.

Besides, money is money. Business is business. I hope that when we do business, we will throw aside our personal feelings.

The third point is that the merger between the two sides is based on the merger of their respective business values. But once the value of the two sides is not so large, what is the value of the adjustment?

We invested in a company that was helping a London listed company out of the market. After that, the two enterprises merged together. In fact, the growth of the acquirers was not as good as that at the time of the acquisition negotiations.

At that time, we left room for the adjustment of shares, that is, according to its future performance, we made two stock adjustments, and last year the shares were further adjusted.

Because the space was left behind, the acquirer did not feel much wrong after seeing the takeover. If the road was blocked, the buyer would feel more money.

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In fact, the integration after mergers and acquisitions also requires a lot of efforts.

It is more common to get the other party completely out of cash in the past few years, but in those years, you will find that the remaining assets will become more and more worthless after you are invited out.

As for the integration and upgrading after mergers and acquisitions, the common way of operation in the world is to retain the classic product line.

When Kappa bought Phenix, it cut down a number of product lines, because some product lines were the same for the target customers, but the cost of personnel, R & D, marketing and so on, each product line was depleted.

When he cut off the product line, he found that sales revenue had not been reduced, but the cost was reduced, so it was financially worthwhile.

The classic product line can also show very good financial interests.

Improving store efficiency is also a good idea, such as developing new products.

For example, after Kappa acquired Phenix, they found that Phenix's products are mostly winter skiing clothes. If the product is introduced into the mainland of China, the product line of summer will be relatively insufficient. This will not make full use of the stores. Therefore, Kappa will develop more outdoor products that can be used in summer and spring and autumn, so as to improve the efficiency of the stores.