Friendly takeover

A friendly takeover occurs when one company acquires another with the cooperation and consent of the target company's management and board. Unlike hostile takeovers, where the acquiring company directly approaches shareholders to gain control against management's wishes, a friendly takeover typically involves negotiations and mutual agreement on terms. This process can benefit both parties, as the acquiring company gains assets or market share, while the target company may see improved resources and strategic direction. Overall, it’s a collaborative approach to corporate acquisition that aims for a smooth transition.