What is the difference between a private and public merger or acquisition?

The primary difference between a private and public merger or acquisition is who is involved in the transaction. A private merger or acquisition takes place between two private entities, such as a small business acquiring another small business. This type of transaction is often negotiated directly between the two businesses, with no need for third-party intermediaries. In contrast, a public merger or acquisition involves a publicly traded company. This type of transaction must be approved by the shareholders of both companies, and is often negotiated by financial advisors and lawyers on both sides. The process is often long and complex, and involves due diligence, disclosure documents, and a variety of regulatory requirements. The legal implications of a public merger or acquisition are often governed by both federal and state regulations, including those of Tennessee. As such, it is important that the parties involved in a public merger or acquisition seek out experienced legal counsel to ensure they remain in compliance with all applicable laws.

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