acquisition agreement

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An acquisition contract used when a company buys another company.

The Acquisition Contract will include a description of the transactions, representations, warranties, conditions, covenants, termination clauses, and compensation.

There are two types of acquisition contracts.

Entity purchase agreements are used when the buyer acquires ownership by purchasing

a majority of the company’s stock.

The acquiring company assumes control of the company, including the obligations and debts

of the company.

Under an asset purchase agreement, the buyer buys all or some of the company’s assets.

The owners still retain ownership of the corporate structure even though there is no practical

business anymore.