Finance

-Asset Deal

-Stock Entity Deal

-Merger Entity Deal

Buyer purchases assets of target —> choose which assets to acquire

-Pro: only the assets wanted

-Con: non-transferable assets can’t be acquired

Acquirer buys majority part of voting right shares —> control targets assets & liabilities

-Pro: easier than negotiation

-Con: shareholders can be problem

2 businesses merge —> survivor stays & other company ceases to exist

-Statutory Merger

-Target merges in purchaser corporation

-Target shares are exchanged for cash / securities

-Purchaser assumes targets liabilities

issues arising about the ownership of the assets that are being transferred

Target merges into the purchaser’s subsidiary

-New company formed when purchaser creates subsidiary

-Subsidiary acquires target —> target absors subsidiary

Majority shareholders pressuring minority shareholders to sell their shares

Private comopany may go public by merging with an public company