By assuming anotherCorporate debtAnd complete the merger
The usual operation mode is: oneenterprisePurchase another enterprise through direct investment, or complete the merger by assuming the debt of another enterprise.The other is leveraged mergers and acquisitions, that is, someenterprise(mostlyfinancial institution）, Depend onBorrowingto loanbuymergerOther companies then decompose and reorganize the acquired companies, and wait to sell them to repay their debts, and finally get profits from the difference between purchase and sale.The latter kind of M&A was once popular in the United States in the 1980s.At present, China's mergers and acquisitions are mostly in the former sensemerger。Mergers and acquisitions of enterprises can reallocate assets from small or no scale to large scale, from lowbenefitOr no benefit into high benefit, from low quality to high quality, so as to improve theprofitAbility.
