Legal Definitions - share acquisition

Definition: Share acquisition refers to the process of acquiring a corporation by purchasing a majority or all of its outstanding shares directly from the shareholders. This is also known as a takeover or stock acquisition.

Example: Company A wants to acquire Company B. Instead of buying all of Company B's assets, Company A decides to purchase a majority of Company B's outstanding shares from its shareholders. This allows Company A to gain control of Company B without having to purchase all of its assets.

Explanation: Share acquisition is a common way for companies to acquire other companies. By purchasing a majority of the outstanding shares, the acquiring company gains control of the target company without having to purchase all of its assets. This can be a more cost-effective and efficient way to acquire a company, especially if the target company has valuable intellectual property or other intangible assets.