Differences Between Equity Merger and Asset Reorganization: Evidence from Jingao Technology and Wingtac Technology

Abstract

Mergers and acquisitions (M&A) are an important process that companies may go through contemporarily, where there are mainly two aspects of M&A, i.e., equity M&A and asset M&A. This article will analyze the difference between equity M&A and asset M&A restructuring by comparing the events of the M&A of two companies, JA Technology and Wintel Technology. The nature and operational process of asset restructuring and equity acquisition are distinctly different, and the risks are different. In addition, it should be carefully planned and weighed in accordance with the actual situation of the company. In the capital markets, there are many different options for restructuring a company, and any one of them may affect the survival of the company. In this case, the choice of M&A is an important topic. It is hoped that the results in this paper will be utilized to company decision makers. These results shed light on guiding further exploration of how companies make decisions.