Series 79: 11.2.2.1. Acquisition Structures

11.2.2.1. Acquisition Structures

Generally, the simplest and most straightforward method of acquisition is a stock purchase (also called a stock sale), in which the buyer acquires a target company by buying the stock from the company’s shareholders. The target company whose stock is purchased can be the seller itself, or a subsidiary spun off from the seller as described in the discussion on divestiture below. In a stock purchase, the buyer assumes the target’s liabilities as well as its assets. A stock purchase results in a parent company (the buy