The Research On The Debt And Credit Transfer In Enterprise Merger And Acquisition

Enterprise merger and acquisition (“M&A”) has been expanding in anincredible speed under the environment of economic globalization. The miracleof figures created through M&A has also been surprising people. M&A is aninevitable need due to the development of market economy. It is an importantway of to improve the enterprise’s capital movement and organization. M&Acannot only meet the strategic goal of expanding business scope and practicearea of both parties, but also provide the parties with more energy andmotivation. M&A also serves as a test to access whether the parties can obtainmore competitiveness and win more market shares afterwards.From the enterprise operation perspective, M&A cannot be simply deemed asa combination of two enterprises. Instead, it means a reorganization activity,which enables the integration of development strategies and culture from theparties and reaches a good result that one plus one could exceed two. Further,M&A covers various inheritances of legal relationship, maintenance,modification and disappearance of legal entity. From the perspective legalrelationship, M&A is a type of business activity that leads to the generation,modification and disappearance of legal relationship. Among differentcomplicated legal relationships, the transfer of debt and credit is one of thetypes. As long as the handling of debt and credit transfer is improper, manyunexpected results would turn out to the M&A parties and even kill the deal.Thus more and more M&A parties take sufficient cautiousness on theidentification, prevention and remedy actions towards legal risks concerningM&A transactions. The first chapter of this essay will be discussing the author’sunderstanding of M&A’s act, model and types. Such acts, models and types willbe divided according to the current effective laws and regulations. In addition,the M&A types will be discussed based on both academic theories and commonpractices. For instance, by M&A methodology, M&A target, M&A purpose and M&Astrategy, etc. Hence, the nature of M&A would lead to the exposure of variouslegal relationships beyond M&A.Following chapter one, chapter two of the essay will further extent to theexploration of civil and commercial law theories applied to debt and credittransfer related to M&A. Further, chapter two will try to identify thedifference and connections between civil debt and credit transfer and commercialdebt and credit transfer. For instance, from the perspective of effectivepre-requisite, the issuance of notice, especially the laws and regulationsapplied in other countries for securing both the efficiency and security of suchcommercial transaction, which might be taken as reference to our country.In chapter three of the essay, the author will first cover the bearing entityof credit and debt transfer under M&A and will also make some analysis on therisks beyond M&A from practical view. For certain, the corresponding remedialaction plans will be suggested or shared. Thus, all the discussions above couldmake the essay meaning from both legislation study and practice guideline.