What Is Asset Acquisition?

Asset acquisition is referred to as AA, also known as pur-chase of assets. It means that an enterprise can selectively purchase all or part of the assets of the other company by paying cash, in kind, securities, labor services or debt relief.

Asset acquisition

Asset acquisition has the following legal characteristics:

1. The main body of the asset purchase agreement is the two companies as buyers and sellers, not including the company's shareholders. Therefore, asset acquisitions and control acquisitions,

1. Internal decision-making process

2.Sign the asset acquisition agreement

3. Handle the delivery procedures of relevant assets according to law

The difference between asset acquisition and asset purchase

(1) Asset-type mergers with different investment scopes refer to the use of cash, shares or other assets by the merging company

For listed companies, the acquisition of a mature company to help them improve the upstream and downstream industry chain is theoretically beneficial to both parties to the transaction. Judging from the case of mergers and acquisitions, the mergers and acquisitions of many listed companies are for the purpose of opening up the industrial chain or extending business.

Market analysts said that high-premium acquisitions by listed companies are often tied to marginal or loss-making assets, and the reason is doubtful. As the M & A war dominated by super-raised funds continues, more suspense awaits the answer: Can the acquisition of assets meet the promised expectations in the future? Is there a profit transfer behind the high premium transaction? Who will become the first "Bitter fruit"?