I'm curious about corporate acquisition methods.

Corporate acquisitions are generally divided into two methods: 'Share Deal' and 'Asset Deal'.

A share acquisition is a method that succeeds the corporation itself by acquiring the shares of an existing company.

Since all of the company's rights and obligations, contractual relationships, debts, etc. are transferred to the acquirer as they are, the procedure is relatively simple, but you must be careful that potential legal and financial risks are also succeeded.

Another method of corporate acquisition, asset transfer, is a form in which only specific business divisions or assets of the company are selectively acquired.

Since the acquirer can selectively succeed only the desired assets, personnel, and contracts, risk management is easier.

However, since transfer procedures are required for each individual asset, and there may be complications related to permits or worker succession.

In addition, there is also the business transfer method, which is a sub-concept of asset transfer and refers to the form of transferring only specific business units.

It can be efficient when the acquisition purpose is clear, but employment and tax issues may arise due to partial succession rather than the entire business.

Also, corporate acquisitions are not just about contract conclusion, but involve complex procedures including legal due diligence, tax review, and contract terms negotiation.

Accordingly, you must accurately analyze the acquisition purpose and risks to make a strategic judgment on whether to proceed with share acquisition or asset acquisition, and we advise that it is safer to go through the review of legal and accounting experts.