51% vs 100% Acquistion

dontbugme's picture
Rank: Gorilla | banana points 637

Working on a potential deal, buyer wants to acquire certain assets of the target but not undergo full integration (target headcount is large, doesn't need certain parts of the biz, total upfront consideration too large), but splitting up the target is a no-go. Will a acquisition of controlling interest suffice in this scenario? My thought is you gain control of the assets you want to leverage, can dedicate all target's best talent there, recognize 100% of the revenue, and still let the rest of the biz operate.

Obviously privateco target with unsophisticated founder.

Any thoughts would be appreciated!

Hedge Fund Interview Course

  • 814 questions across 165 hedge funds. Crowdsourced from over 500,000 members.
  • 11 Detailed Sample Pitches and 10+ hours of video.
  • Trusted by over 1,000 aspiring hedge fund professionals just like you.

Comments (1)

Feb 14, 2019