Divided into “Private” and “Public” acquisitions.
Acquire or merging company (also termed a target) is
not listed on a public stock market.
An additional, dimension or categorization consist of
whether an acquisition or hostile.
Achieving acquisition success has proven to be very
difficult, while various studies have shown that 50% of
acquisitions were unsuccessful.
purchase is perceived as being a "friendly" one or a
"hostile" depends significantly on how the proposed
acquisition is communicated to and perceived by the
target company's board of directors, employees and
Its called "confidentiality bubble"
"Acquisition" usually refers to a purchase of a smaller
firm by a larger one.
Sometimes a smaller firm will acquire management
control of a larger firm ( reverse takeover).
LETTER OF INTENT
(LOI or LoI, and sometimes capitalized as Letter of
Intent in legal writing, but only when referring to a
specific document under discussion) is a document
outlining an agreement between two or more parties
before the agreement is finalized.
The letter of intent generally does not bind the parties to
commit to a transaction, but may bind the parties to
exclusivity obligations so that the transaction can be
considered through a due diligence process involving
lawyers, accountants, tax advisors, and other
professionals, as well as business people from both sides
Five key types
2. Representations and warranties
4. Termination rights (breakup fees)
5. Provisions relating to obtaining required shareholder approvals
under state law and related SEC filings required under federal