References in periodicals archive ?
For one, the risk manager of the acquiring company must consider the composition of the surviving entity: Is it an asset purchase or a stock purchase?
The acquiring company did not have a long-term vision for the merger or for the acquired company.
Offer to help set up an advisory board of key ex-directors who may assist the acquiring company after the acquisition in matters of community or government relations for a limited transition time.
In any acquisition, Reed notes, one either has to assume the acquiring company would have some sort of change of control provision, which means it has to come up with cash to pay the debt as part of the acquisition, or it has to come up with an alternative financing source without actually assuming the specific debt instrument.
351 transaction, T receives stock in the acquirer's subsidiary while, in a merger, T would receive acquiring company stock.
The acquiring company executives also see the former as inferior and perceive themselves to be superior.
According to the LOI, a company under the control of the Seller will transfer to the ownership of the acquired company, without consideration, an existing plant in China (excluding property of the plant that will be leased to the acquiring company without consideration) that manufactures TMA and PDEB (the "existing plant") and all of the intellectual property, know-how and technology pertaining to the existing plant.
It is a scenario that plays out on a regular basis across the country, where all too often, no one in an acquiring company even thinks about the insurance policy until the deal is nearly closed.
If the acquiring company already owns a portion of the target's stock, the IRS has historically treated such portion as consideration paid for the assets acquired.
For the acquiring company, the rules for the proper tax treatment of M&A costs are reasonably clear--generally the costs are nondeductible capital expenditures.