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1. Acquirer & Acquiree

1. Acquirer & Acquiree. An acquisition is a type of business combination. It involves 2 parties, known as the Acquirer; and Acquiree. What is the difference between these 2 parties?. 1. Acquirer & Acquiree. The acquirer obtains control of the other combining entity or business.

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1. Acquirer & Acquiree

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  1. 1. Acquirer & Acquiree • An acquisition is a type of business combination. It involves 2 parties, known as the • Acquirer; and • Acquiree. • What is the difference between these 2 parties?

  2. 1. Acquirer & Acquiree • The acquirer obtains control of the other combining entity or business. • The entity being acquired is known as the acquiree. • In the remainder of this module, we will use • A to denote the acquirer; and • B to denote the acquiree

  3. 1. Acquirer & Acquiree The arrow indicates direction of control. • What does the acquirer actually receive from the acquiree? A has acquired control of B A B

  4. 1.a The Acquirer A B • The entire business of B • 1 or more segments of B • 1 or more cash generating units of B • Shares in B Click on the mouse to find out A may acquire …

  5. 1.a The Acquirer What if A simply acquires 1 or more individual assets of B? Click on the mouse to find out. This is NOT regarded as a business combination • It is treated as a purchase of non-current assets End this lesson

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