Acquiree

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Financial Terms and Glossary

Acquiree

An acquiree is the company or entity that is being purchased or taken over in an acquisition. The acquiree may be a smaller company or one that fits strategically into the acquiring company’s business model. Once the acquisition is completed, the acquiree’s assets, liabilities, and operations are typically integrated into the acquiring company’s structure. The acquiree may maintain some degree of autonomy or become fully absorbed, depending on the terms of the deal. The acquiree’s shareholders generally receive compensation, which can be in the form of cash, stock, or a combination of both, depending on the acquisition agreement.

Example

If Company A buys Company B, then Company B is considered the acquiree in the transaction, while Company A is the acquirer.

Key points

• The company being purchased in an acquisition.

• May be integrated into the acquiring company or maintain some independence.

• Typically receives compensation in cash, stock, or both.

Quick Answers to Curious Questions

What happens to an acquiree after an acquisition?

The acquiree’s assets and operations are typically integrated into the acquiring company, though the acquiree may maintain some level of independence depending on the terms.

How are acquiree shareholders compensated?

They are usually compensated with cash, stock, or a combination, depending on the structure of the acquisition deal.

Can an acquiree refuse an acquisition?

Yes, an acquiree can refuse an acquisition offer, but this could lead to a hostile takeover attempt if the acquiring company proceeds without the acquiree’s consent.