Differences between forms of acquisition.

Hi everybody, could you please help me with the differences between acquisiton forms (M&A).

  1. “In a stock purchase, there is the need for majority shareholders’ approval” Target shareholders? or Acquirer shareholders? I guess acquirer but not sure…

2)Taxes: “In a stock purchase, shareholders pay capital gains tax” again, target or acquirer shareholders?

Thank you guysss

Much appreciated


Target shareholders.

If you want to purchase a majority of the target’s shares, a majority of the target shareholders has to approve (to the extent that they’ll sell their shares).

Target shareholders: they sell their shares and pay capital gains taxes on the sale.

My pleasure.