Acquisition Strategy

Secure-Asset-Deals-MnA-KrishnaG-CEO

Asset Deals in Mergers and Acquisitions: A Comprehensive Guide for C-Level Executives

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An asset deal occurs when a buyer acquires specific assets and liabilities of a company rather than purchasing the company’s stock. This type of transaction allows the buyer to choose which assets they want and, in some cases, which liabilities they are willing to assume. Asset deals are often attractive to buyers looking to avoid potential risks associated with a company’s existing liabilities, contingent liabilities, and other historical issues that could impact future performance.

Bear-Hug-KrishnaG-CEO

The Bear Hug Strategy: A Comprehensive Guide for C-Suite

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At its core, a bear hug is a proposition that a target company’s board cannot easily refuse. The offering company (acquirer) proposes a purchase price well above the target’s current market valuation, making it difficult for the target’s shareholders to decline the deal.

Unlike traditional mergers and acquisitions (M&A), the bear hug stands out for its aggressiveness combined with a veneer of goodwill. It offers substantial financial gains to shareholders, thereby placing immense pressure on the target’s board to accept the proposal.