Friendly Acquisition

Friendly acquisition refers to a situation in mergers and acquisitions where one company (the acquirer) seeks to buy another company (the target) with the target's approval and cooperation. In this scenario, both companies negotiate the terms of the deal openly, often with the target's management endorsing and supporting the acquisition to their shareholders. This approach contrasts with hostile takeovers, where the target company does not want to be acquired. Friendly acquisitions typically aim for a smoother integration process and can create mutual benefits, aligning the interests of both parties involved.