Corporate Acquisition Law and Legal Definition
Corporate acquisition is a take over of one corporation by another if both parties retain their legal existence after the transaction. For example, if “Corporation X” buys 51% or more of “Corporation Y”, then “Corporation Y” becomes a subsidiary of “Corporation X.” Acquisitions occur in exchange for cash, stock, debt, or some combination. Acquisitions can be friendly or hostile. A friendly acquisition occurs when the board of directors supports the acquisition and a hostile acquisition occurs when the board of directors does not support the acquisition.
Legal Definition list
Related Legal Terms
- Acquisition
- Acquisition and Cross-Servicing Agreement
- Acquisition and Improvement Loan [Veterans' Relief]
- Acquisition Assistance [Transportation]
- Acquisition Cost of an Item of Purchased Equipment
- Acquisition Cost of Equipment [Education]
- Acquisition Credit
- Acquisition Debt
- Acquisition Fee
- Acquisition Indebtedness
