Different M&A methods lead to different subjects of M&A parties and their corresponding rights and obligations, which makes the subjects of M&A parties face different legal risks. Different M&A methods lead to different M&A subjects and their corresponding rights and obligations, which makes different M&A subjects face different legal risks. Therefore, choosing the right M&A method is the key to M&A's success ... Usually, according to different M&A objects, M&A can be divided into two ways: equity merger and asset merger. 1. Equity merger and acquisition. The advantage of adopting equity merger and acquisition is that it can effectively solve some legal restrictions. If the automobile industry belongs to a specific industry, it is impossible to obtain permission to enter the industry through newly established enterprises, but it is convenient to enter the specific industry through equity mergers and acquisitions, which exceeds the restrictions of the industry; Another example is that the specific assets (such as patents) of the target enterprise may not be directly transferred to a third party due to the provisions of the law or the company's articles of association. At this time, if you choose the form of equity acquisition, you can effectively avoid the provisions on asset transfer restrictions in the process of asset acquisition. The main risk of equity M&A is that after the completion of M&A, the shareholders of the target enterprise have to bear all kinds of legal risks existing in the target enterprise before M&A, such as debts and legal disputes. In practice, due to the lack of full understanding of the target enterprise before M&A, the acquirer rashly carries out M&A, which leads to the outbreak of various potential risks of the target enterprise after M&A and fails to realize the beautiful original intention of M&A. 2. Asset acquisition. The advantage of asset M&A is that the acquired assets are physical assets or intangible assets such as patents, trademarks and goodwill of the target company, and the subject qualification of the target company will not change, that is, the two companies are independent, and the acquirer does not have to bear any responsibility for the creditor's rights and debts of the target company. The operation of asset merger and acquisition is relatively simple, just the sale of assets between the acquirer and the target enterprise. Compared with equity merger and acquisition, asset merger and acquisition can effectively avoid various problems involved in the target enterprise, such as creditor's rights and debts, labor relations, legal disputes and so on.

Legal objectivity:

Article 172 of the Company Law of People's Republic of China (PRC) * * * The merger of companies can adopt absorption merger or new merger. A company absorbs other companies for merger, and the absorbed company is dissolved. The merger of two or more companies to form a new company is a new merger, and the parties to the merger are dissolved. Article 175 of the Company Law of People's Republic of China (PRC) When a company is merged, the creditor's rights and debts of the merging parties shall be inherited by the surviving company or the newly established company after the merger.