Mergers & Acquisitions Lawyer in Surrey BC
Mergers and acquisitions (M&A) are transactions in which the ownership of companies, other business organizations or their operating units are transferred or combined.
A merger is a legal consolidation of two entities into one entity, whereas an acquisition occurs when one entity takes ownership of another entity’s stock, equity interests or assets.
Commercially speaking, both types of transactions generally result in the consolidation of assets and liabilities under one entity and the distinction between a “merger” and an “acquisition” can therefore be less clear.
DIFFERENCES BETWEEN A MERGER VS ACQUISITION TRANSACTION
A merger is a process by which two companies join and one new company continues to exist.
A merger occurs when two companies combine together to form a new enterprise altogether, and neither of the previous companies remains independently.
In other words, the acquired company ceases to exist and becomes part of the acquiring company after the merger.
Acquisitions involve a process by which one company acquires the assets of another company.
An acquisition is essentially the purchase of one business or company by another.
Types of Acquisition
There are usually two types of acquisition, namely, private and public. The distinction depends on whether the stocks of the target company are publicly traded or not.
Acquisitions can be further divided into two categories: asset acquisitions and management acquisitions.
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.
Management acquisitions should be approved by the majority of shareholders. In a management acquisition, the management of a company, say, a chief executive manager, purchases a controlling stake in a company, making it private.
Mergers and acquisitions transactions, whether large or small, have inherent complexities that need to be clearly understood and properly addressed.
Experienced legal counsel is essential on all M&A transactions and for all clients.
CONSULTING WITH A SPECIALIZED MERGER & ACQUISITION LAWYER
At Patrola Law Corporation, our dedicated Surrey BC merger & acquisition lawyers are happy to provide you with advice on any issues related to mergers and acquisitions.
We have worked with numerous businesses seeking, evaluating and engaging in mergers and acquisitions. We possess an unparalleled depth of market knowledge, a wide network of contacts and highly practiced deal-making skills.