06/21/2010
Special Issues Involved in Acquiring Divisions or Subsidiaries of Larger Companies
Merger and acquisition transactions come in myriad forms. One of the most challenging is the divestiture or acquisition of a division, subsidiary, line of business or business unit being extracted from a larger company. A divisional acquisition (as used here to refer to all such types of transactions) can be a bit of a hybrid, combining elements of acquiring an entire business with all its assets and liabilities, as in the acquisition of a stand-alone company, and elements of acquiring certain assets and liabilities and leaving others behind, whether in an asset acquisition involving the acquisition of substantially all the assets of a company or simply limited and easily identifiable assets that do not, by themselves, constitute a "business" (such as inventory, equipment or particular patents).
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