What is Acquirer vs Acquiror?
How do you legally define it?
What are some examples in a sentence or contracts?
Keep reading as we have gathered exactly the information that you need!
Let’s dig into our legal dictionary!
Are you ready?
Let’s get started!
Understanding Acquirer vs Acquiror
What is the difference between acquirer and acquiror?
To start with, let’s look at what each of these terms mean.
An acquirer is a person or entity buying the rights of another.
The rights can be in a good, business or property.
For example:
A business acquirer is a person or entity that buys a business or enters into a purchase of assets agreement (or purchase of shares agreement) to buy all the rights associated with the targeted business.
Such rights include the rights to get the contracts, own the intellectual property, brand, etc.
So what does acquiror mean?
The term acquiror can be used synonymously with the term acquirer.
By searching through official business documents, we have found that both terms are used quite extensively.
Definition of acquiror and acquirer
Let’s look at the difference in how the terms acquirer and acquiror are defined.
According to the Cambridge Dictionary, acquiror is defined as:
“Buyer” or “purchase”
In other words, an acquiror is a person or entity buying something or certain rights.
Moving on, according to the Merriam-Webster dictionary, acquirer is defined as:
“One that acquires” or “a company that acquires another company”
As you can see, both terms have the same meaning in substance.
Who can it be
An acquirer or acquiror can be any individual or legal entity, such as:
- Sole proprietor
- Partnership
- Limited liability company
- Corporation
- Government agency
- Foreign entity
Acquirors and acquirers can also be in any industry or market segment, such as:
- Financial institutions
- Service organizations
- Development agency
- Manufacturing company
- Distribution company
No matter who is contemplating acquiring another business or company, the driving force is that the combination of the knowledge, resources and capabilities of the purchasing company along with the target can lead to greater benefits to both parties.
Use in a sentence
How do you use the terms acquiror vs acquirer in a sentence?
Let’s look at a few ways you can use the terms in common English.
Following the merger, the acquirer realized that the transition was not as easy as it thought.
In a hostile acquisition, the acquirer acts without the board of directors’ support and consent.
The acquiror and target entered into an agreement in principle to the satisfaction of the shareholders.
The acquiror has agreed to pay 60% of the purchase price by issuing common stocks and 40% in cash.
Examples in Contracts
Let’s look at a few examples to see how each term “acquiror” and “acquirer” are used in business and commercial contracts.
Example of Acquiror: Arrangement Agreement
Example of Acquiror: Asset Purchase Agreement
Example of Acquirer: Acquisition Agreement
Example of Acquirer: Lock-Up Agreement
Takeaways
So what is the legal definition of Acquirer vs Acquiror?
Let’s look at a summary of our findings.
Acquirer vs Acquiror:
Related legal terms
Acquisition cost
Acquisition
Anti-Assignment Clause
Assignment Contract Law
Assignment Law
Assignment of contract
Assignment of Rights
Change of Control Clause
Consent to Assignment
Legal Assignment
Merchant acquirer
Open Merchant Account
Statutory Merger
