Legal Definitions - friendly takeover

Definition: A friendly takeover is when one company buys another company with the approval and agreement of the company being bought. This is different from a hostile takeover, where the company being bought does not want to be bought and fights against it.

Example: Company A wants to buy Company B. Company A talks to the leaders of Company B and they agree to the sale. This is a friendly takeover.

Explanation: In a friendly takeover, both companies are happy with the sale and work together to make it happen. This can be good for both companies because they can combine their resources and become stronger together. It is important for the leaders of both companies to communicate and agree on the terms of the sale.