Equity Sales
Learn how an acquisition can be structured as an equity sale.
Transcript
While the term merger may be the more familiar term used to describe the process of combining companies, most M&A transactions are actually acquisitions. In an acquisition, one company purchases either the assets or equity of another company. These transactions are known respectively as asset sales and equity sales.
Let’s start by learning about equity sales.
I. Equity Sale Structure
In an equity sale, the acquiring company purchases most or all of the target company’s outstanding stock...
