Acquisition and Merger

Acquisition refers to one company purchasing a majority stake in another company. Companies may conduct acquisitions for various reasons, such as increasing market share, reducing costs (synergies), acquiring new talents or technologies, etc.

Acquisition is typically a complex and lengthy process involving many professionals, such as investment bankers, accountants, and lawyers. According to accounting rules, if you acquire controlling interest in another company (usually more than 50% of the issued shares), you must consolidate 100% of its assets and liabilities, revenues, and expenses, even if you may not have 100% ownership.

The tasks involved in an acquisition may include legal due diligence, industry policy analysis, transaction structure design, review/drafting/negotiation of transaction documents, and analysis and advice on regulatory and approval matters related to the transaction.