Mergers and Acquisitions - M&A'
M&A can include a number of different transactions, detailed below.
In a merger, the boards of directors for two companies approve the combination and seek shareholders‘ approval. After the merger, the acquired company ceases to exist and becomes part of the acquiring company.
In a simple acquisition, the acquiring company obtains the majority stake in the acquired firm, which does not change its name or legal structure, where both companies can preserve their names and organizational structures.
In a tender offer, one company offers to purchase the outstanding stock of the other firm at a specific price. The acquiring company communicates the offer directly to the other company’s shareholders, bypassing the management and board of directors. While the acquiring company may continue to exist — especially if there are certain dissenting shareholders — most tender offers result in mergers.
In a purchase of assets, one company acquires the assets of another company. The company whose assets are being acquired must obtain approval from its shareholders. The purchase of assets is typical during bankruptcy proceedings, where other companies bid for various assets of the bankrupt company, which is liquidated upon the final transfer of assets to the acquiring firm(s).
In a purchase of assets, one company acquires the assets of another company. The company whose assets are being acquired must obtain approval from its shareholders. The purchase of assets is typical during bankruptcy proceedings, where other companies bid for various assets of the bankrupt company, which is liquidated upon the final transfer of assets to the acquiring firm(s).
