What is the procedure for acquiring a company?

Legal subjectivity:

What is the procedure of enterprise assets acquisition? 1. The acquirer negotiates with the target company or its shareholders to get a preliminary understanding of the situation, and then reaches an acquisition intention and signs a letter of intent for acquisition. 2. With the assistance of the target company, the acquirer cleans up the assets and rights of the target company to be acquired, evaluates the assets, makes a detailed investigation of the management structure of the target company, and makes statistics on employees. 3. Representatives of both parties to the acquisition and creditors of the target company form a group to draft and pass the acquisition implementation plan. 4. The creditor and the acquired party reach a debt restructuring agreement, stipulating the debt repayment after the acquisition. 5. The two parties formally negotiate and sign an acquisition contract through negotiation. 6. Both parties shall submit this acquisition to the shareholders' meeting and other respective authorities for deliberation and voting in accordance with the Articles of Association or the Company Law and relevant supporting regulations. 7. Both parties shall submit the procurement contract to the relevant departments for approval or filing according to the requirements of laws and regulations. Through cooperation with financial consultants, enterprises determine their own position and form acquisition strategies according to their own industry conditions, their own assets, operating conditions and development strategies. That is, the demand analysis of M&A, the characteristic mode of M&A target, the choice and arrangement of M&A direction. Asset purchase refers to a civil legal act in which a company obtains all or part of the assets of another company for compensation. Asset purchase has the following legal characteristics: 1. The main body of the asset purchase agreement is two companies as buyers and sellers, excluding the shareholders of the company. Therefore, there are essential differences among asset acquisition, control acquisition and equity acquisition. 2. The goal of asset acquisition is to sell the company's specific assets, excluding the company's liabilities. 3. After the completion of the asset acquisition, the acquiring company and the target company each maintain independent legal person qualifications. 4. Although the legal relationship of asset acquisition is relatively simple, it may also generate corresponding transaction costs. The above is the knowledge about the process of enterprise asset acquisition explained by Bian Xiao, and I hope it will help you. Asset purchase refers to a civil legal act in which a company obtains all or part of the assets of another company for compensation. If in doubt, please visit our website for legal advice.