Joint Acquisitions by Financial and Strategic Buyers:
An Overview of Key Business and Legal Issues

Abstract

This article provides a summary of certain legal and business issues relevant to joint acquisitions in which both a financial buyer and a strategic buyer join together to acquire a potential target or its business. Through the joint acquisition relationship, financial buyers can provide access to capital, knowledge of financial engineering, and deal-making technique. In return, strategic buyers can provide management expertise and an increased return on investment through synergies and other business arrangements involving the target. Joint acquisitions may allow the acquiring parties to complement each other and capitalize on acquisition opportunities that neither party would be willing to pursue on its own.

TOPICS: Private equity, exchanges/markets/clearinghouses, equity portfolio management, risk management