What types of corporate M&A are there?

Corporate M&A is broadly divided into acquisition and merger, and is classified into various types depending on the acquisition method.

The most common type of corporate M&A is the share transfer method, where the acquiring company acquires new or existing shares to secure management rights of the selling company.

Next, the business transfer method is a corporate M&A form where all or part of the business is transferred under a contract, and the succession of assets, know-how, and labor relations may also vary depending on the contract content.

The asset transfer method is a corporate M&A in which only specific assets such as real estate or intellectual property rights are selectively acquired, and the company organization or workforce is not succeeded as a feature.

On the other hand, merger is a corporate M&A method in which two or more companies are integrated into one, and is divided into absorption merger, where the existing company continues and absorbs the other company, and consolidation merger, where a new company is established.

Since the legal and financial effects of corporate M&A vary greatly depending on the purpose and structure, it is most important to accurately understand the differences between types before proceeding.

For details, please consult with a corporate M&A specialist attorney to also examine the transaction structure, legal risks, and the possibility of future disputes together.