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I've seen shell companies used during acquisitions to make it less obvious that FAANG is buying a company.
by abound 3y ago
I've seen shell companies used during acquisitions to make it less obvious that FAANG is buying a company.
- inetknght 3y agoI'd argue that's not a legitimate use for a shell company. Hiding the entities behind the company should not be legal.
- abound 3y agoFor clarity, in the instance I witnessed, the company being acquired was 100% aware that it was FAANG acquiring them, it's just that all the legal paperwork had the acquiree being consumed by a random shell company that was a wholly owned subsidiary of the FAANG company. I think the goal is just not to leak information ahead of time, and perhaps to insulate the FAANG company in case anything goes sideways mid-deal.