What Are the Different Types of Mergers and Acquisitions Jobs?
Merger and acquisition business, generally refers to the business of merger (Merger) and acquisition (Acquisition)
M & A business
Right!
- Merger and acquisition business, generally refers to the merger (Merger) and acquisition (Acquisition)
- The most basic
- In theory, the most common motivation for M & A is--
- In specific practice, the drivers of mergers and acquisitions are summarized in the following categories:
- 1. Expand production scale and reduce costs
- Through mergers and acquisitions, the scale of the company has been expanded, which can form an effective
- According to the different functions of M & A or the characteristics of the industrial organization involved in M & A, M & A can be divided into three basic types
- Horizontal mergers and acquisitions
- The basic feature of horizontal mergers and acquisitions is the horizontal integration of enterprises in the international scope. In recent years, due to the global wave of industrial restructuring, combined with the actual development needs of various industries in China, and the certain support of national policies and laws for horizontal reorganization, the development of horizontal mergers and acquisitions in the industry has been rapid.
- 2. Vertical mergers and acquisitions
- Vertical mergers and acquisitions occur between upstream and downstream in the same industry. Vertical mergers and acquisitions are not direct competition between companies, but between suppliers and demanders. Therefore, the basic characteristic of vertical mergers and acquisitions is the vertical integration of enterprises in the overall market.
- 3. Mixed mergers and acquisitions
- Hybrid mergers and acquisitions are mergers and acquisitions between companies in different industries. In theory, the basic purpose of hybrid mergers and acquisitions is to diversify risks and seek economies of scope. In the face of fierce competition, companies from all walks of life in China are thinking of diversification to varying degrees. Hybrid mergers and acquisitions are an important method of diversification, providing a powerful, convenient and low-risk way for enterprises to enter other industries.
- The development of the above three types of mergers and acquisitions in China is different. At present, Chinese enterprises have basically shaken off the idea of blind diversification, and more horizontal mergers and acquisitions have occurred. Data show that the proportion of horizontal mergers and acquisitions in China's M & A activities has always been about 50%. Horizontal mergers and acquisitions are undoubtedly the most direct impact on the development of the industry. Hybrid mergers and acquisitions have also developed to a certain extent, mainly in stronger enterprises. A considerable number of industries with mixed mergers and acquisitions have relatively good benefits, but their development prospects are unclear. Vertical mergers and acquisitions are relatively immature in China, and are basically in the energy and basic industries such as steel and petroleum. The cost of raw materials in these industries has a great impact on industry efficiency. Therefore, vertical mergers and acquisitions have become an effective way for enterprises to strengthen their business. [1]