Acquisition Structure

An acquisition structure refers to the financial and legal framework of an acquisition deal, detailing how the acquiring company will purchase the target company. The structure can vary based on the goals of the acquiring company, the nature of the target company, and the resources available. Common acquisition structures include asset purchases, stock purchases, and mergers. The choice of structure affects tax liabilities, regulatory requirements, the allocation of risk, and the integration process.

Example

If Company A decides to purchase all of Company B’s assets instead of its shares, the acquisition structure is an asset purchase, which might have different tax and legal implications compared to a stock purchase.