There are three common forms of merger and acquisition in financial management, namely, absorption merger, creation merger and holding merger. The difference is:

1, different legal person qualifications

The merger will retain its legal personality, while one or more other enterprises will lose their independent legal personality after the merger. All the companies involved in the merger have eliminated the original legal personality and then formed a new legal entity. The original holding merged company still retains the legal person status.

2. Different meanings

Absorption and merger refers to the merger of two or more enterprises into one enterprise. Creative merger is also called new merger, creative merger and union. It means that in the process of merger, all the companies involved in the merger eliminate the original legal person qualification and then form a new legal person entity.

Holding merger means that one enterprise buys or obtains the voting shares of another enterprise, and reaches the shareholding ratio that can control the financial and operating policies of the merged enterprise. Through the merger, the original company still retains its legal person status.

Extended data:

The relevant requirements of financial management stipulate that:

1. financial planning helps companies to formulate guidelines for business and financial planning. Rationalize the company's key objectives and consider capital investment. The company's goals are translated into tangible financial indicators. Investment decisions and objectives produce comprehensive financial statements, linking financial objectives with financial indicators. Then the whole organization operates around these goals and indicators.

2. Financial management expenses: Management expenses refer to various expenses incurred by the enterprise administrative department for organizing and managing production and business activities, including salary and welfare expenses, trade union funds, employee education expenses, labor insurance premiums, unemployment insurance premiums, research and development expenses, business entertainment expenses, property tax, land use tax, technology transfer expenses, technology development expenses, amortization of intangible assets, bad debt losses, etc.

3. In modern enterprise management, financial management is a comprehensive and restrictive system engineering. It is a comprehensive management of decision-making, planning and control of capital movement through the form of value, and it is the core content of enterprise management.

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