What are the features of mergers and acquisitions?
Advantage and disadvantage
Mergers - also known as mergers and acquisitions - refer to the merger of two or more independent companies to form a single business, with the dominant company typically absorbing one or more companies. Acquisition - A company that buys or controls the assets or assets of another company's stock or assets in cash or securities. Mergers and acquisitions - refers to the merger of two or more companies into new businesses. After the merger was completed, several legal persons became legal persons. Corporate mergers and acquisitions are professional investment activity that combines complexity and technology.
From the perspective of the merging: it can adequately protect the interests and increase the assets of the merging party; the result of the merger collapses due to insufficient funds, and the stocks rise after speculation. Then there may be a disadvantage: the value of the asset may be underestimated and lost; the merged company is subject to sovereignty, and the profit is forced to split. At the same time, due to limited autonomy, employees of the merged company may face changes in wages and benefits, compulsory ruling, and financing channels are single, which will lead to the proliferation of merger risks.
For example, Amazon bought Whole Foods, and e-commerce giant Amazon AMZN announced that it would acquire Whole Foods, a high-end organic grocery chain, for $13.7 billion; the deal officially ended at the end of August. Although the acquisition has been in trouble, it has provided Amazon with hundreds of physical stores and provided the company with a reliable channel into the highly competitive grocery and food industries....