With the intensification of market competition, strong alliance has become the most commonly used means nowadays.
Enterprise restructuring refers to a company's capital structure has undergone significant changes, the results of restructuring will change the rights and interests of various securities holders.
In China, enterprise restructuring should be understood as: any major change in the capital structure leading to changes in the rights and interests of creditors and owners of enterprises can be regarded as enterprise restructuring, which can be understood as expansion and extension of the original enterprise, as well as the formation of new enterprise individuals through transactions of the original enterprise as a party to property rights transactions.
However, the integration of assets needs a strong team to complete.
Strategies for Asset Integration
Generally speaking, there are two strategies for asset integration:
1. Peeling off non-performing assets
Non-performing assets are the first problem to be solved in asset reorganization. Generally speaking, non-performing assets have the following characteristics: hindering the core competitiveness of enterprises; consuming corporate cash resources; consuming corporate management resources; not producing net cash flow; usually not profitable or a small amount of profit. The divestiture of non-performing assets can be carried out by selling, leasing, contracting and repurchasing of original shareholders.
2. Integration of high-quality assets
After stripping off the non-performing assets, the remaining high-quality assets should be dealt with separately according to different situations. For assets that do not belong to the core business of an enterprise but have strong profitability, the original operating shareholders may continue to operate. For assets that conform to the enterprise's development strategy and have higher income level, they can be operated directly by the merger and acquisition party. For assets with strong correlation and complementarity with mergers and acquisitions, mergers and acquisitions can carry out asset replacement.
The application of the above strategies must follow the principle of optimizing the allocation of resources and achieving win-win situation for both sides of M&A.
Various methods of asset integration:
1. Integration of Current Assets
Current assets are short-term assets deposited in the process of production and operation of an enterprise, including currency funds, receivables, inventory and short-term investment. The completion of mergers and acquisitions will inevitably bring about an increase in the total amount of current assets. On the one hand, the increase of the total amount of current assets can enhance the solvency of enterprises and reduce financial risks, on the other hand, it can also reduce the yield of total assets. Therefore, mergers and acquisitions should determine the number of current assets according to the scale of production and development needs of enterprises. For redundant liquid assets, investment, sale or replacement must be made. In addition, mergers and acquisitions should speed up the turnover speed of current assets, because the turnover speed of total assets of enterprises is largely limited by the turnover speed of current assets. In order to achieve the above objectives, mergers and acquisitions should first analyze the composition and quality of current assets and determine whether there are problems of poor turnover and excessive occupation of various current assets. Then we should analyze whether the circulation channels of current assets are smooth. Finally, mergers and acquisitions should divest non-performing current assets, redistribute the proportion of money, receivables, inventory and short-term investment, and speed up the turnover of current assets. In a word, the following principles must be followed in the process of current assets integration: (1) reasonably predicting and controlling the demand and occupancy of current assets, which can ensure the production and operation needs of enterprises without backlog and waste; (2) reasonably organizing and raising funds to ensure the normal operation of production and accelerate the turnover speed of current assets; (3) balancing revenue and expenditure, analyzing the structure and ratio of current assets. For example, with a reasonable small occupancy, higher economic benefits have been achieved.

2. Integration of Fixed Assets
Fixed assets refer to those assets which are held for the production of commodities, the provision of labor services, leasing or management, and whose service life is longer than one year, and whose unit value is higher. It can play a role in a number of production and operation cycles and maintain its original physical form, but its value gradually decreases due to loss. The reduced value is transferred to product cost or expense in the form of depreciation and is compensated in sales revenue. When integrating fixed assets, we should first consider the high-quality assets which have better income efficiency and can be independently divided. For high-quality assets, they should be absorbed and integrated. For those assets which are not easy to distinguish, the less effective assets should be stripped. However, if these assets are really needed for production, leasing is adopted. Specifically, fixed assets can be disposed of as follows: (1) old projects that have been demolished and facilities that cannot be normally produced shall be stripped; (2) projects that have been completed but not yet transferred to fixed assets shall be transferred to enterprise assets; (3) equipment necessary for some production but not belonging to the enterprise shall be leased for use; (4) non-operational assets with small scale and low value, if so, It is an indispensable facility for the company in the future and should be retained. On the contrary, it should be stripped. Mergers and acquisitions parties should make clear the boundaries between the absorption and divestiture of assets in the formulation of merger and acquisition schemes, so as to extract the divested fixed assets from the total assets of the target enterprise, thereby reducing the integration workload in the future and saving the integration cost.
3. Integration of Long-term Investment
Long-term investment refers to the cash, physical and intangible assets that enterprises invest directly in other units with a payback period of more than one year, as well as the stocks and bonds that they have purchased and are not ready to cash in one year. In the merger and acquisition of enterprises, the focus of long-term investment integration is the integration of long-term equity investment. The merger and acquisition party should analyze and calculate the long-term investment of the target enterprise. Long-term investment should be accounted for by cost method or equity method according to different situations. Cost method refers to the long-term investment that an investing enterprise has no control over the invested unit, no joint control and no significant impact. The equity method refers to the method that the initial investment of a long-term investment is valued at the cost of investment, and then the book value of the investment is adjusted according to the change of the share of the owner's equity of the invested enterprise. The long-term investment of the target enterprise, which has a growing value and good returns, should be retained. Long-term investments with lower asset quality in target enterprises should be divested.
4. Integration of intangible assets
Intangible assets refer to the resources controlled by a specific subject, which do not have physical form, play a long-term role in production and operation and can bring economic benefits. In accounting, intangible assets are divided into identifiable intangible assets and unrecognizable intangible assets. Identifiable intangible assets include patent rights, proprietary technology, trademark rights, copyright, land use rights, concessions, etc. Unrecognizable intangible assets refer to goodwill. In the merger and acquisition of enterprises, the scope of intangible assets is more extensive. In addition to the content of accounting, intangible assets also include the enterprise's institutional knowledge resources, the ability of management, corporate strategy, corporate culture, the strength of organizational structure, customers, sales channels, strategic alliances, employees, suppliers, partners and so on. The integration of intangible assets plays an important role in the merger and acquisition of enterprises. In 1997, COSCO merged Shanghai Zhongcheng Industrial Co., Ltd. and renamed Zhongcheng Industrial Co., Ltd. In fact, this is to inject COSCO Group's intangible assets into the cities in order to achieve the integration of intangible assets. In a sense, the integration of intangible assets is as important as that of tangible assets.

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