Corporate takeover

What is corporate takeover?

A corporate takeover, also known as an acquisition,
is the process by which one company acquires
control over another company by purchasing a
significant portion of its shares or assets. This can
be achieved through various means, such as buying
a majority stake in the target company, merging
with it, or acquiring its assets. Corporate takeovers
are often driven by strategic objectives, such as
expanding market presence, gaining access to new
technologies, or achieving synergies to enhance
overall business performance.
 Types of corporate takeover.
There are several types of corporate takeovers,
including:
• Friendly takeover
• Hostile takeover
• Merger
• Assest / stock purchase
• Management buyout
• Reverse takeover
Friendly Takeover:
Occurs with the mutual agreement of both the acquiring and target
companies. The boards of directors generally support the
acquisition, and negotiations are amicable.
Hostile Takeover: Involves the acquiring company pursuing the
target company against its wishes. This can be achieved through
various tactics, such as a tender offer directly to shareholders.
Merger: Companies agree to combine their operations and form a
new entity. Mergers can be either friendly or contested, depending
on the agreement between the parties.
Asset Purchase: Involves the acquiring company purchasing specific
assets or divisions of the target company, rather than acquiring the
entire business.
Stock Purchase: The acquiring company buys a significant portion of
the target company's shares, gaining control and influencing its
operations.
Management Buyout (MBO): Current managers or executives of a
company lead the acquisition, often with the support of external
investors, to take the company private
Reverse Takeover (RTO): A private company acquires a publicly traded
company, allowing the private entity to go public without the traditional
initial public offering (IPO) process.