"The general trend of the world is that after a long period of division, there will be unification, and after a long period of unification, there will be division." This is a famous sentence at the beginning of "Romance of the Three Kingdoms", which is used to describe the chaotic regime change. But looking at the current capital market, this sentence also accurately reveals another hidden logic: the industry structure has never been static, it is constantly reshaped due to policy fluctuations, technological breakthroughs and capital promotion. And one of the most destructive and creative tools is mergers and acquisitions.
In the past decade, many seemingly "unshakable" industry giants collapsed overnight. The driving force behind them was not the iron fist of supervision, nor was it consumers voting with their feet, but the reorganization marriage between capital and capital.
Why can mergers and acquisitions become the key to breaking the industry monopoly? Because it is not just "buying companies", it is "prying structures"; it is not just merging assets, but rewriting the order. The hundreds of transactions that Goheal has participated in, promoted and observed in the global capital market over the years show that the real turning point of an industry is often not derived from technological upgrades, but from the reorganization of capital.
American Goheal M&A Group
In the traditional impression, mergers and acquisitions are big fish eating small fish. But in today's capital battlefield, more and more "small fish bite big sharks" are being staged. You think it is just acquiring a loss-making enterprise, but in fact, there is a "siege net" of cross-industry penetration behind it; you think it is just asset restructuring, but in fact, it is dismantling the industry's "moat".
For example, in a cross-border merger and acquisition case in the new energy industry in which Goheal participated, a company that originally had no say in the field of photovoltaic materials, through a reverse merger of a listed inverter company, not only opened up the technology chain in one fell swoop, but also used it as a springboard to enter the terminal market, and ultimately affected the pricing system of the three giants at the time. This is not a "surprise", but a precise "capital change". In the toolbox of "mergers and acquisitions and restructuring", the most destructive is not the acquisition itself, but the ability to reconstruct industry control.
In the automotive industry chain, the most fierce challenge faced by a leading vehicle manufacturer in the past two years was not from new forces in car manufacturing, but from a listed company that entered the supply chain through mergers and acquisitions. It broke through the original Tier 1 pattern with extremely low marginal costs and customized services and became the industry's "catfish". Behind this seemingly "asymmetric" challenge is a high-level game of capital operation strategy.
In Goheal's view, today's mergers and acquisitions are no longer limited to the old script of "scale expansion" or "market share increase", but are performing a rewriting drama of the underlying rules of the industry.
Oligopolistic industries often have one thing in common: high barriers, low efficiency, and high profits. But when these "moats" collapse due to the precise attack of capital, the industry will have to enter a new round of reshuffles.
And the first card of the reshuffle is often an unpopular company that launches a merger and acquisition, opening the prelude to the "dialogue pattern".
In highly concentrated industries such as medicine, consumer electronics, and new energy, several projects that Goheal has assisted reveal similar logic: acquiring core industry resources (such as channels, patents, and processes) through mergers and acquisitions, and then compressing costs and breaking through the original price alliance through structural reorganization, thereby prying open the seemingly solid oligopoly alliance and reshaping the track rhythm.
Let’s take a specific example: an unknown chemical manufacturing company, through backdoor mergers and acquisitions, opened up the downstream pharmaceutical terminal, and then tied up the original team with a gambling agreement, and successfully won the pricing power of a domestic high-end anti-tumor API. Within two years, the market share originally monopolized by the four giants fell below 70%, and innovative mergers and acquisitions became the last straw that overwhelmed the "giant alliance".
And Goheal always emphasizes: the essence of mergers and acquisitions is not "how much to buy", but "how much to change".
Mergers and acquisitions that truly break the industry pattern have never been a number game, but a challenge to the extreme of structural design. How do you cut assets, how do you change the board of directors, how do you use separation, injection, stock exchange, voting rights delegation, employee stock ownership platform... These terms are not simple financial actions, but "operation formulas" to change the potential of the industry.
More importantly, mergers and acquisitions provide a realistic path for medium-sized enterprises to "upgrade their dimensions". For small and medium-sized enterprises, it is difficult to overtake on the curve by relying on product innovation, and it is costly to break through by relying on marketing. However, entering the high-profit links in the supply chain through capital operations and restructuring upstream and downstream control nodes is a realistic and efficient "way to break the circle".
A recent M&A strategy research report by Goheal pointed out that globally, more than 63% of successful "challenging oligopoly" projects are cut into and reconstructed through mergers and acquisitions, rather than simply relying on internal growth. The logic behind this is that capital can win without fighting, and the key is which nerve to hit.
In the past, we talked about innovation and technical barriers, but what really leveraged the industry was often "structural events". And mergers and acquisitions are the most accurate and powerful "structural raids".
If you want to pry open an industry, you don't necessarily have to become the "next Huawei". As long as you accurately seize its ecological chain nodes and cooperate with effective restructuring design, you will be able to become the "new nerve of the industry". This is exactly the strategic path that Goheal has actively advocated in domestic and foreign companies in recent years: using capital to break through boundaries, reorganize control, and drive change.
In today's era, change is a risk, and change is an opportunity. Especially for those companies that are "suppressed from growing" by oligarchs, mergers and acquisitions are not a financial project, but a strategic liberation. You don't need to own the entire resource, you just need to have the control path design power over the resource.
The essence of industry change is no longer just the arrival of the technological singularity, but the reincarnation of capital logic.
As a certain investment tycoon admitted in an interview with Goheal: "Technological change is a variable, and capital structure is a constant. Only those who control the structure can control the track."
Goheal Group
The ultimate weapon to break the oligopoly may not be the next explosive product, not the next technological singularity, but a secret but precise merger and acquisition restructuring.
So here comes the question:
Which areas do you think are most likely to be "torn apart" through capital restructuring in highly concentrated industries such as AI, big health, and new energy? How can small and medium-sized enterprises use mergers and acquisitions to achieve a transition from supporting roles to leading roles?
Welcome to leave a message in the comment area to discuss: Can mergers and acquisitions really change industry rules and reshape the right to speak? Which "M&A catfish" in which industry are you most concerned about?
[About Goheal] Goheal is a leading investment holding company focusing on global M&A holdings. It is deeply engaged in the three core business areas of acquisition of listed company control, M&A and restructuring of listed companies, and capital operation of listed companies. With its deep professional strength and rich experience, it provides enterprises with full life cycle services from M&A to restructuring to capital operation, aiming to maximize corporate value and achieve long-term benefit growth.
