It is imperative for the acquirer to understand this relationship and apply it to its advantage.
Employee retention is possible only when resources are exchanged and managed without affecting their independence.
"Acquisition" usually refers to a purchase of a smaller firm by a larger one.
One hybrid form often employed for tax purposes is a triangular merger, where the target company merges with a shell company wholly owned by the buyer, thus becoming a subsidiary of the buyer. Internal Revenue Code, a forward triangular merger is taxed as if the target company sold its assets to the shell company and then liquidated, whereas a reverse triangular merger is taxed as if the target company's shareholders sold their stock in the target company to the buyer.Acquisitions are divided into "private" and "public" acquisitions, depending on whether the acquiree or merging company (also termed a target) is or is not listed on a public stock market.Some public companies rely on acquisitions as an important value creation strategy.Hostile acquisitions can, and often do, ultimately become "friendly", as the acquiror secures endorsement of the transaction from the board of the acquiree company.This usually requires an improvement in the terms of the offer and/or through negotiation.