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

A merger or acquisition is a business transaction in which two companies combine to form a single entity. In Washington, mergers and acquisitions are governed by the Washington Business Corporation Act. The major difference between a private and public merger or acquisition is that a private merger or acquisition involves the sale of a privately held company, while a public merger or acquisition involves the sale of a publicly traded company. In a private merger or acquisition, the company being acquired is not required to disclose the terms of the deal or any financial information to the public, whereas in a public merger or acquisition, the company must provide detail about the transaction to shareholders, potential investors, and the Securities and Exchange Commission. The private merger or acquisition process is often quicker than the public process, because the parties involved do not need to satisfy the same regulatory requirements. In addition, a private merger or acquisition lessens the risk of hostile takeovers. In contrast, public mergers or acquisitions can involve large investment banks and financial institutions and require significant disclosure by the company being acquired, which can increase its market visibility and attract potential investors. The public merger or acquisition process is also more heavily regulated than private acquisitions. Overall, private and public mergers and acquisitions both involve the combination of two companies, but the process, disclosure requirements, and risks differ greatly.

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

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