It means that a company purchases all or part of the assets or property rights of another company, thus influencing and controlling the acquired company, so as to enhance the competitive advantage of the enterprise and realize the business objectives of the enterprise.
Introduction of company acquisition
The acquirer negotiates with the target company or its shareholders to get a preliminary understanding of the situation, and then reaches the intention of acquisition and signs the letter of intent for acquisition. In order to ensure the security of M&A transactions, the acquirer will generally entrust a project team composed of lawyers, accountants, appraisers and other professionals to conduct due diligence on the target company, and the target company will promote the success of the M&A project.
Generally, it is necessary to provide the acquirer with necessary information to disclose the company's assets, operation, finance, creditor's rights and debts, organization and labor and personnel. If there are malicious mergers and acquisitions or the information disclosed by the target company is untrue, it will cause greater legal risks to the other party.
Therefore, in the preparatory stage of M&A, we suggest that M&A and M&A sign an exclusive negotiation agreement to preliminarily stipulate M&A's intention, payment guarantee, trade secrets, disclosure obligations, liability for breach of contract, etc., so as to avoid the arbitrariness of M&A process and protect the interests of both parties in the case of the breakdown of negotiations in the early stage of M&A.