Risk arbitrage is a strategy used to take advantage of the spread between the price at which a company trades at the time of the announcement of a proposal for merger or acquisition, and the price when the transaction is closed at a future date. The gain depends on the probability that the deal will be closed and the time required to close the...
The basic difference between an APA and SPA is the clear itemization of assets included and excluded in the purchase. When a buyer purchases the shares of a company, this itemization is not necessary because the company's ownership transfers as is, including titles to all assets and liabilities - disclosed or undisclosed. With an asset purchase, the buyer may be selecting only specific assets, leaving behind redundant assets. Thus, the selected assets must be itemized in a schedule to the APA.
Similarly, any material contracts that are assumed, such as key customer contracts, also must be itemized in an APA because they stay with the selling company unless assigned over. As part of due diligence for an asset purchase, a buyer must ensure that all assigned customer contracts do not have specific clauses prohibiting such contract assignments.
Read More »
Get our best content delivered straight to your inbox:
Terms for Selling Your Business:
Home | Advertising Info | Write for Us | About | Contact Us
Partner Sites :