i Table of contents 355

Technology M and A 2026

Definitive global law guides offering comparative analysis from top-ranked lawyers

INTRODUCTION		6
Contributed by George Casey, George Casey, Contributing Editor		6
BELGIUM		12
Law and Practice		12
Contributed by Allegiance Law		12
Trends and Developments		34
Contributed by Allegiance Law		34
BRAZIL		39
Law and Practice		39
Contributed by /asbz		39
BULGARIA		54
Law and Practice		54
Contributed by BOYANOV & Co.		54
CHILE		72
Trends and Developments		72
Contributed by EDN Abogados		72
DENMARK		79
Law and Practice		79
Contributed by Bech-Bruun		79
Trends and Developments		97
Contributed by Bech-Bruun		97
EL SALVADOR		105
Law and Practice		105
Contributed by Torres Legal		105
Trends and Developments		117
Contributed by Torres Legal		117
FRANCE		123
Law and Practice		123
Contributed by Jeantet		123
INDIA		142
Law and Practice		142
Contributed by JSA		142
ITALY		159
Law and Practice		159
Contributed by ICT Legal Consulting		159
Trends and Developments		175
Contributed by ICT Legal Consulting		175
JAPAN		182
Trends and Developments		182
Contributed by Nagashima Ohno & Tsunematsu		182
NETHERLANDS		190
Law and Practice		190
Contributed by Greenberg Traurig, LLP		190
Trends and Developments		207
Contributed by Greenberg Traurig, LLP		207
PARAGUAY		212
Law and Practice		212
Contributed by Mascareño Vargas – Asesores		212
Trends and Developments		223
Contributed by Mascareño Vargas – Asesores		223
SINGAPORE		229
Trends and Developments		229
Contributed by Rajah & Tann Singapore LLP		229
SWITZERLAND		236
Law and Practice		236
Contributed by Loyens & Loeff		236
Trends and Developments		253
Contributed by Loyens & Loeff		253
TAIWAN		259
Law and Practice		259
Contributed by Lee and Li Attorneys-at-Law		259
Trends and Developments		271
Contributed by Lee and Li Attorneys-at-Law		271
THAILAND		278
Law and Practice		278
Contributed by Formichella & Sritawat Attorneys at Law		278
Trends and Developments		287
Contributed by Baker McKenzie		287
UK		293
Law and Practice		293
Contributed by Addleshaw Goddard		293
Trends and Developments		312
Contributed by Preiskel & Co		312
USA		319
Law and Practice		319
Contributed by Linklaters		319
Trends and Developments		338
Contributed by Linklaters		338
USA – CALIFORNIA		343
Trends and Developments		343
Contributed by Baker McKenzie		343
USA – NEW YORK		352
Trends and Developments		352
Contributed by Next Legal		352
1. Market Trends		14
1.1 Technology M&A Market		14
1.2 Key Trends		14
2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company		15
2.1 Establishing a New Company		15
2.2 Type of Entity		15
2.3 Early-Stage Financing		15
2.4 Venture Capital		17
2.5 Venture Capital Documentation		17
2.6 Change of Corporate Form or Migration		17
3. Initial Public Offering (IPO) as a Liquidity Event		17
3.1 IPO v Sale		17
3.2 Choice of Listing		17
3.3 Impact of the Choice of Listing on Future M&A Transactions		18
4. Sale as a Liquidity Event (Sale of a Privately Held Venture Capital-Financed Company)		18
4.1 Liquidity Event: Sale Process		18
4.2 Liquidity Event: Transaction Structure		18
4.3 Liquidity Event: Form of Consideration		19
4.4 Liquidity Event: Certain Transaction Terms		19
5. Spin-Offs		19
5.1 Trends: Spin-Offs		19
5.2 Tax Consequences		19
5.3 Spin-Off Followed by a Business Combination		20
5.4 Timing and Tax Authority Ruling		20
6. Acquisitions of Public (Exchange-Listed) Technology Companies		20
6.1 Stakebuilding		20
6.2 Mandatory Offer		20
6.3 Transaction Structures		21
6.4 Consideration and Minimum Price		21
6.5 Common Conditions for a Takeover Offer/Tender Offer		21
6.6 Deal Documentation		22
6.7 Minimum Acceptance Conditions		22
6.8 Squeeze-Out Mechanisms		22
6.9 Requirement to Have Certain Funds/Financing to Launch a Takeover Offer		22
6.10 Types of Deal Protection Measures		23
6.11 Additional Governance Rights		23
6.12 Irrevocable Commitments		23
6.13 Securities Regulator’s or Stock Exchange Process		23
6.14 Timing of the Takeover Offer		24
7. Overview of Regulatory Requirements		24
7.1 Regulations Applicable to a Technology Company		24
7.2 Primary Securities Market Regulators		24
7.3 Restrictions on Foreign Investments		24
7.4 National Security Review/Export Control		25
7.5 Antitrust Regulations		26
7.6 Labour Law Regulations		26
7.7 Currency Control/Central Bank Approval		28
8. Recent Legal Developments		28
8.1 Significant Court Decisions or Legal Developments		28
9. Due Diligence/Data Privacy		29
9.1 Due Diligence Process		29
9.2 Technology Company Due Diligence		30
9.3 Data Privacy		31
10. Disclosure		32
10.1 Making a Bid Public		32
10.2 Prospectus Requirements		32
10.3 Producing Financial Statements		32
10.4 Disclosure of Transaction Documents		32
11. Duties of Directors		32
11.1 Principal Directors’ Duties		32
11.2 Special or Ad Hoc Committees		33
11.3 Board’s Role		33
11.4 Independent Outside Advice		33
1. Market Trends		41
1.1 Technology M&A Market		41
1.2 Key Trends		41
2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company		41
2.1 Establishing a New Company		41
2.2 Type of Entity		42
2.3 Early-Stage Financing		42
2.4 Venture Capital		42
2.5 Venture Capital Documentation		43
2.6 Change of Corporate Form or Migration		43
3. Initial Public Offering (IPO) as a Liquidity Event		43
3.1 IPO v Sale		43
3.2 Choice of Listing		43
3.3 Impact of the Choice of Listing on Future M&A Transactions		44
4. Sale as a Liquidity Event (Sale of a Privately Held Venture Capital-Financed Company)		44
4.1 Liquidity Event: Sale Process		44
4.2 Liquidity Event: Transaction Structure		44
4.3 Liquidity Event: Form of Consideration		44
4.4 Liquidity Event: Certain Transaction Terms		44
5. Spin-Offs		44
5.1 Trends: Spin-Offs		44
5.2 Tax Consequences		45
5.3 Spin-Off Followed by a Business Combination		45
5.4 Timing and Tax Authority Ruling		45
6. Acquisitions of Public (Exchange-Listed) Technology Companies		45
6.1 Stakebuilding		45
6.2 Mandatory Offer		45
6.3 Transaction Structures		46
6.4 Consideration and Minimum Price		46
6.5 Common Conditions for a Takeover Offer/Tender Offer		46
6.6 Deal Documentation		46
6.7 Minimum Acceptance Conditions		46
6.8 Squeeze-Out Mechanisms		46
6.9 Requirement to Have Certain Funds/Financing to Launch a Takeover Offer		46
6.10 Types of Deal Protection Measures		47
6.11 Additional Governance Rights		47
6.12 Irrevocable Commitments		47
6.13 Securities Regulator’s or Stock Exchange Process		47
6.14 Timing of the Takeover Offer		47
7. Overview of Regulatory Requirements		47
7.1 Regulations Applicable to a Technology Company		47
7.2 Primary Securities Market Regulators		48
7.3 Restrictions on Foreign Investments		48
7.4 National Security Review/Export Control		48
7.5 Antitrust Regulations		48
7.6 Labour Law Regulations		48
7.7 Currency Control/Central Bank Approval		50
8. Recent Legal Developments		50
8.1 Significant Court Decisions or Legal Developments		50
9. Due Diligence/Data Privacy		50
9.1 Due Diligence Process		50
9.2 Technology Company Due Diligence		51
9.3 Data Privacy		51
10. Disclosure		51
10.1 Making a Bid Public		51
10.2 Prospectus Requirements		51
10.3 Producing Financial Statements		51
10.4 Disclosure of Transaction Documents		52
11. Duties of Directors		52
11.1 Principal Directors’ Duties		52
11.2 Special or Ad Hoc Committees		52
11.3 Board’s Role		52
11.4 Independent Outside Advice		53
1. Market Trends		57
1.1 Technology M&A Market		57
1.2 Key Trends		57
2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company		57
2.1 Establishing a New Company		57
2.2 Type of Entity		57
2.3 Early-Stage Financing		57
2.4 Venture Capital		57
2.5 Venture Capital Documentation		57
2.6 Change of Corporate Form or Migration		58
3. Initial Public Offering (IPO) as a Liquidity Event		58
3.1 IPO v Sale		58
3.2 Choice of Listing		58
3.3 Impact of the Choice of Listing on Future M&A Transactions		58
4. Sale as a Liquidity Event (Sale of a Privately Held Venture Capital-Financed Company)		59
4.1 Liquidity Event: Sale Process		59
4.2 Liquidity Event: Transaction Structure		59
4.3 Liquidity Event: Form of Consideration		59
4.4 Liquidity Event: Certain Transaction Terms		59
5. Spin-Offs		59
5.1 Trends: Spin-Offs		59
5.2 Tax Consequences		60
5.3 Spin-Off Followed by a Business Combination		60
5.4 Timing and Tax Authority Ruling		60
6. Acquisitions of Public (Exchange-Listed) Technology Companies		60
6.1 Stakebuilding		60
6.2 Mandatory Offer		61
6.3 Transaction Structures		61
6.4 Consideration and Minimum Price		61
6.5 Common Conditions for a Takeover Offer/Tender Offer		62
6.6 Deal Documentation		62
6.7 Minimum Acceptance Conditions		63
6.8 Squeeze-Out Mechanisms		63
6.9 Requirement to Have Certain Funds/Financing to Launch a Takeover Offer		63
6.10 Types of Deal Protection Measures		63
6.11 Additional Governance Rights		63
6.12 Irrevocable Commitments		64
6.13 Securities Regulator’s or Stock Exchange Process		64
6.14 Timing of the Takeover Offer		64
7. Overview of Regulatory Requirements		64
7.1 Regulations Applicable to a Technology Company		64
7.2 Primary Securities Market Regulators		65
7.3 Restrictions on Foreign Investments		65
7.4 National Security Review/Export Control		66
7.5 Antitrust Regulations		66
7.6 Labour Law Regulations		67
7.7 Currency Control/Central Bank Approval		67
8. Recent Legal Developments		67
8.1 Significant Court Decisions or Legal Developments		67
9. Due Diligence/Data Privacy		68
9.1 Due Diligence Process		68
9.2 Technology Company Due Diligence		68
9.3 Data Privacy		68
10. Disclosure		69
10.1 Making a Bid Public		69
10.2 Prospectus Requirements		69
10.3 Producing Financial Statements		69
10.4 Disclosure of Transaction Documents		70
11. Duties of Directors		70
11.1 Principal Directors’ Duties		70
11.2 Special or Ad Hoc Committees		70
11.3 Board’s Role		70
11.4 Independent Outside Advice		71
1. Market Trends		81
1.1 Technology M&A Market		81
1.2 Key Trends		81
2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company		81
2.1 Establishing a New Company		81
2.2 Type of Entity		82
2.3 Early-Stage Financing		82
2.4 Venture Capital		82
2.5 Venture Capital Documentation		82
2.6 Change of Corporate Form or Migration		82
3. Initial Public Offering (IPO) as a Liquidity Event		83
3.1 IPO v Sale		83
3.2 Choice of Listing		83
3.3 Impact of the Choice of Listing on Future M&A Transactions		83
4. Sale as a Liquidity Event (Sale of a Privately Held Venture Capital-Financed Company)		84
4.1 Liquidity Event: Sale Process		84
4.2 Liquidity Event: Transaction Structure		84
4.3 Liquidity Event: Form of Consideration		84
4.4 Liquidity Event: Certain Transaction Terms		85
5. Spin-Offs		85
5.1 Trends: Spin-Offs		85
5.2 Tax Consequences		85
5.3 Spin-Off Followed by a Business Combination		86
5.4 Timing and Tax Authority Ruling		86
6. Acquisitions of Public (Exchange-Listed) Technology Companies		86
6.1 Stakebuilding		86
6.2 Mandatory Offer		87
6.3 Transaction Structures		87
6.4 Consideration and Minimum Price		87
6.5 Common Conditions for a Takeover Offer/Tender Offer		87
6.6 Deal Documentation		88
6.7 Minimum Acceptance Conditions		88
6.8 Squeeze-Out Mechanisms		88
6.9 Requirement to Have Certain Funds/Financing to Launch a Takeover Offer		89
6.10 Types of Deal Protection Measures		89
6.11 Additional Governance Rights		89
6.12 Irrevocable Commitments		90
6.13 Securities Regulator’s or Stock Exchange Process		90
6.14 Timing of the Takeover Offer		90
7. Overview of Regulatory Requirements		90
7.1 Regulations Applicable to a Technology Company		90
7.2 Primary Securities Market Regulators		91
7.3 Restrictions on Foreign Investments		91
7.4 National Security Review/Export Control		91
7.5 Antitrust Regulations		92
7.6 Labour Law Regulations		92
7.7 Currency Control/Central Bank Approval		93
8. Recent Legal Developments		93
8.1 Significant Court Decisions or Legal Developments		93
9. Due Diligence/Data Privacy		93
9.1 Due Diligence Process		93
9.2 Technology Company Due Diligence		93
9.3 Data Privacy		94
10. Disclosure		94
10.1 Making a Bid Public		94
10.2 Prospectus Requirements		94
10.3 Producing Financial Statements		95
10.4 Disclosure of Transaction Documents		95
11. Duties of Directors		95
11.1 Principal Directors’ Duties		95
11.2 Special or Ad Hoc Committees		96
11.3 Board’s Role		96
11.4 Independent Outside Advice		96
1. Market Trends		107
1.1 Technology M&A Market		107
1.2 Key Trends		107
2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company		108
2.1 Establishing a New Company		108
2.2 Type of Entity		108
2.3 Early-Stage Financing		108
2.4 Venture Capital		108
2.5 Venture Capital Documentation		108
2.6 Change of Corporate Form or Migration		108
3. Initial Public Offering (IPO) as a Liquidity Event		109
3.1 IPO v Sale		109
3.2 Choice of Listing		109
3.3 Impact of the Choice of Listing on Future M&A Transactions		109
4. Sale as a Liquidity Event (Sale of a Privately Held Venture Capital-Financed Company)		109
4.1 Liquidity Event: Sale Process		109
4.2 Liquidity Event: Transaction Structure		109
4.3 Liquidity Event: Form of Consideration		110
4.4 Liquidity Event: Certain Transaction Terms		110
5. Spin-Offs		110
5.1 Trends: Spin-Offs		110
5.2 Tax Consequences		110
5.3 Spin-Off Followed by a Business Combination		110
5.4 Timing and Tax Authority Ruling		110
6. Acquisitions of Public (Exchange-Listed) Technology Companies		110
6.1 Stakebuilding		110
6.2 Mandatory Offer		110
6.3 Transaction Structures		110
6.4 Consideration and Minimum Price		110
6.5 Common Conditions for a Takeover Offer/Tender Offer		111
6.6 Deal Documentation		111
6.7 Minimum Acceptance Conditions		111
6.8 Squeeze-Out Mechanisms		111
6.9 Requirement to Have Certain Funds/Financing to Launch a Takeover Offer		111
6.10 Types of Deal Protection Measures		111
6.11 Additional Governance Rights		112
6.12 Irrevocable Commitments		112
6.13 Securities Regulator’s or Stock Exchange Process		112
6.14 Timing of the Takeover Offer		112
7. Overview of Regulatory Requirements		112
7.1 Regulations Applicable to a Technology Company		112
7.2 Primary Securities Market Regulators		113
7.3 Restrictions on Foreign Investments		113
7.4 National Security Review/Export Control		113
7.5 Antitrust Regulations		113
7.6 Labour Law Regulations		114
7.7 Currency Control/Central Bank Approval		114
8. Recent Legal Developments		114
8.1 Significant Court Decisions or Legal Developments		114
9. Due Diligence/Data Privacy		114
9.1 Due Diligence Process		114
9.2 Technology Company Due Diligence		115
9.3 Data Privacy		115
10. Disclosure		115
10.1 Making a Bid Public		115
10.2 Prospectus Requirements		115
10.3 Producing Financial Statements		115
10.4 Disclosure of Transaction Documents		116
11. Duties of Directors		116
11.1 Principal Directors’ Duties		116
11.2 Special or Ad Hoc Committees		116
11.3 Board’s Role		116
11.4 Independent Outside Advice		116
1. Market Trends		125
1.1 Technology M&A Market		125
1.2 Key Trends		125
2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company		126
2.1 Establishing a New Company		126
2.2 Type of Entity		126
2.3 Early-Stage Financing		126
2.4 Venture Capital		127
2.5 Venture Capital Documentation		127
2.6 Change of Corporate Form or Migration		127
3. Initial Public Offering (IPO) as a Liquidity Event		127
3.1 IPO v Sale		127
3.2 Choice of Listing		127
3.3 Impact of the Choice of Listing on Future M&A Transactions		128
4. Sale as a Liquidity Event (Sale of a Privately Held Venture Capital-Financed Company)		128
4.1 Liquidity Event: Sale Process		128
4.2 Liquidity Event: Transaction Structure		128
4.3 Liquidity Event: Form of Consideration		128
4.4 Liquidity Event: Certain Transaction Terms		128
5. Spin-Offs		129
5.1 Trends: Spin-Offs		129
5.2 Tax Consequences		129
5.3 Spin-Off Followed by a Business Combination		129
5.4 Timing and Tax Authority Ruling		130
6. Acquisitions of Public (Exchange-Listed) Technology Companies		130
6.1 Stakebuilding		130
6.2 Mandatory Offer		131
6.3 Transaction Structures		131
6.4 Consideration and Minimum Price		132
6.5 Common Conditions for a Takeover Offer/Tender Offer		133
6.6 Deal Documentation		133
6.7 Minimum Acceptance Conditions		134
6.8 Squeeze-Out Mechanisms		134
6.9 Requirement to Have Certain Funds/Financing to Launch a Takeover Offer		134
6.10 Types of Deal Protection Measures		134
6.11 Additional Governance Rights		135
6.12 Irrevocable Commitments		135
6.13 Securities Regulator’s or Stock Exchange Process		135
6.14 Timing of the Takeover Offer		136
7. Overview of Regulatory Requirements		136
7.1 Regulations Applicable to a Technology Company		136
7.2 Primary Securities Market Regulators		136
7.3 Restrictions on Foreign Investments		136
7.4 National Security Review/Export Control		137
7.5 Antitrust Regulations		137
7.6 Labour Law Regulations		137
7.7 Currency Control/Central Bank Approval		138
8. Recent Legal Developments		138
8.1 Significant Court Decisions or Legal Developments		138
9. Due Diligence/Data Privacy		138
9.1 Due Diligence Process		138
9.2 Technology Company Due Diligence		138
9.3 Data Privacy		138
10. Disclosure		139
10.1 Making a Bid Public		139
10.2 Prospectus Requirements		139
10.3 Producing Financial Statements		139
10.4 Disclosure of Transaction Documents		140
11. Duties of Directors		140
11.1 Principal Directors’ Duties		140
11.2 Special or Ad Hoc Committees		140
11.3 Board’s Role		140
11.4 Independent Outside Advice		141
1. Market Trends		144
1.1 Technology M&A Market		144
1.2 Key Trends		145
2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company		145
2.1 Establishing a New Company		145
2.2 Type of Entity		145
2.3 Early-Stage Financing		146
2.4 Venture Capital		146
2.5 Venture Capital Documentation		146
2.6 Change of Corporate Form or Migration		146
3. Initial Public Offering (IPO) as a Liquidity Event		146
3.1 IPO v Sale		146
3.2 Choice of Listing		147
3.3 Impact of the Choice of Listing on Future M&A Transactions		147
4. Sale as a Liquidity Event (Sale of a Privately Held Venture Capital-Financed Company)		147
4.1 Liquidity Event: Sale Process		147
4.2 Liquidity Event: Transaction Structure		147
4.3 Liquidity Event: Form of Consideration		148
4.4 Liquidity Event: Certain Transaction Terms		148
5. Spin-Offs		148
5.1 Trends: Spin-Offs		148
5.2 Tax Consequences		149
5.3 Spin-Off Followed by a Business Combination		149
5.4 Timing and Tax Authority Ruling		149
6. Acquisitions of Public (Exchange-Listed) Technology Companies		149
6.1 Stakebuilding		149
6.2 Mandatory Offer		149
6.3 Transaction Structures		150
6.4 Consideration and Minimum Price		150
6.5 Common Conditions for a Takeover Offer/Tender Offer		151
6.6 Deal Documentation		151
6.7 Minimum Acceptance Conditions		151
6.8 Squeeze-Out Mechanisms		151
6.9 Requirement to Have Certain Funds/Financing to Launch a Takeover Offer		151
6.10 Types of Deal Protection Measures		152
6.11 Additional Governance Rights		152
6.12 Irrevocable Commitments		152
6.13 Securities Regulator’s or Stock Exchange Process		152
6.14 Timing of the Takeover Offer		152
7. Overview of Regulatory Requirements		152
7.1 Regulations Applicable to a Technology Company		152
7.2 Primary Securities Market Regulators		153
7.3 Restrictions on Foreign Investments		153
7.4 National Security Review/Export Control		154
7.5 Antitrust Regulations		154
7.6 Labour Law Regulations		154
7.7 Currency Control/Central Bank Approval		155
8. Recent Legal Developments		155
8.1 Significant Court Decisions or Legal Developments		155
9. Due Diligence/Data Privacy		156
9.1 Due Diligence Process		156
9.2 Technology Company Due Diligence		157
9.3 Data Privacy		157
10. Disclosure		157
10.1 Making a Bid Public		157
10.2 Prospectus Requirements		157
10.3 Producing Financial Statements		157
10.4 Disclosure of Transaction Documents		158
11. Duties of Directors		158
11.1 Principal Directors’ Duties		158
11.2 Special or Ad Hoc Committees		158
11.3 Board’s Role		158
11.4 Independent Outside Advice		158
1. Market Trends		161
1.1 Technology M&A Market		161
1.2 Key Trends		161
2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company		161
2.1 Establishing a New Company		161
2.2 Type of Entity		162
2.3 Early-Stage Financing		162
2.4 Venture Capital		162
2.5 Venture Capital Documentation		162
2.6 Change of Corporate Form or Migration		163
3. Initial Public Offering (IPO) as a Liquidity Event		163
3.1 IPO v Sale		163
3.2 Choice of Listing		163
3.3 Impact of the Choice of Listing on Future M&A Transactions		163
4. Sale as a Liquidity Event (Sale of a Privately Held Venture Capital-Financed Company)		163
4.1 Liquidity Event: Sale Process		163
4.2 Liquidity Event: Transaction Structure		163
4.3 Liquidity Event: Form of Consideration		164
4.4 Liquidity Event: Certain Transaction Terms		164
5. Spin-Offs		164
5.1 Trends: Spin-Offs		164
5.2 Tax Consequences		164
5.3 Spin-Off Followed by a Business Combination		164
5.4 Timing and Tax Authority Ruling		164
6. Acquisitions of Public (Exchange-Listed) Technology Companies		165
6.1 Stakebuilding		165
6.2 Mandatory Offer		165
6.3 Transaction Structures		165
6.4 Consideration and Minimum Price		166
6.5 Common Conditions for a Takeover Offer/Tender Offer		166
6.6 Deal Documentation		166
6.7 Minimum Acceptance Conditions		166
6.8 Squeeze-Out Mechanisms		166
6.9 Requirement to Have Certain Funds/Financing to Launch a Takeover Offer		167
6.10 Types of Deal Protection Measures		167
6.11 Additional Governance Rights		167
6.12 Irrevocable Commitments		167
6.13 Securities Regulator’s or Stock Exchange Process		167
6.14 Timing of the Takeover Offer		168
7. Overview of Regulatory Requirements		168
7.1 Regulations Applicable to a Technology Company		168
7.2 Primary Securities Market Regulators		169
7.3 Restrictions on Foreign Investments		169
7.4 National Security Review/Export Control		169
7.5 Antitrust Regulations		169
7.6 Labour Law Regulations		170
7.7 Currency Control/Central Bank Approval		170
8. Recent Legal Developments		170
8.1 Significant Court Decisions or Legal Developments		170
9. Due Diligence/Data Privacy		170
9.1 Due Diligence Process		170
9.2 Technology Company Due Diligence		171
9.3 Data Privacy		171
10. Disclosure		171
10.1 Making a Bid Public		171
10.2 Prospectus Requirements		171
10.3 Producing Financial Statements		172
10.4 Disclosure of Transaction Documents		172
11. Duties of Directors		173
11.1 Principal Directors’ Duties		173
11.2 Special or Ad Hoc Committees		173
11.3 Board’s Role		173
11.4 Independent Outside Advice		174
1. Market Trends		192
1.1 Technology M&A Market		192
1.2 Key Trends		192
2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company		192
2.1 Establishing a New Company		192
2.2 Type of Entity		193
2.3 Early-Stage Financing		193
2.4 Venture Capital		193
2.5 Venture Capital Documentation		193
2.6 Change of Corporate Form or Migration		193
3. Initial Public Offering (IPO) as a Liquidity Event		193
3.1 IPO v Sale		193
3.2 Choice of Listing		193
3.3 Impact of the Choice of Listing on Future M&A Transactions		194
4. Sale as a Liquidity Event (Sale of a Privately Held Venture Capital-Financed Company)		194
4.1 Liquidity Event: Sale Process		194
4.2 Liquidity Event: Transaction Structure		194
4.3 Liquidity Event: Form of Consideration		194
4.4 Liquidity Event: Certain Transaction Terms		194
5. Spin-Offs		194
5.1 Trends: Spin-Offs		194
5.2 Tax Consequences		195
5.3 Spin-Off Followed by a Business Combination		195
5.4 Timing and Tax Authority Ruling		196
6. Acquisitions of Public (Exchange-Listed) Technology Companies		196
6.1 Stakebuilding		196
6.2 Mandatory Offer		196
6.3 Transaction Structures		197
6.4 Consideration and Minimum Price		197
6.5 Common Conditions for a Takeover Offer/Tender Offer		197
6.6 Deal Documentation		197
6.7 Minimum Acceptance Conditions		198
6.8 Squeeze-Out Mechanisms		198
6.9 Requirement to Have Certain Funds/Financing to Launch a Takeover Offer		198
6.10 Types of Deal Protection Measures		199
6.11 Additional Governance Rights		199
6.12 Irrevocable Commitments		199
6.13 Securities Regulator’s or Stock Exchange Process		199
6.14 Timing of the Takeover Offer		200
7. Overview of Regulatory Requirements		200
7.1 Regulations Applicable to a Technology Company		200
7.2 Primary Securities Market Regulators		200
7.3 Restrictions on Foreign Investments		200
7.4 National Security Review/Export Control		201
7.5 Antitrust Regulations		202
7.6 Labour Law Regulations		202
7.7 Currency Control/Central Bank Approval		203
8. Recent Legal Developments		203
8.1 Significant Court Decisions or Legal Developments		203
9. Due Diligence/Data Privacy		203
9.1 Due Diligence Process		203
9.2 Technology Company Due Diligence		203
9.3 Data Privacy		204
10. Disclosure		204
10.1 Making a Bid Public		204
10.2 Prospectus Requirements		204
10.3 Producing Financial Statements		205
10.4 Disclosure of Transaction Documents		205
11. Duties of Directors		205
11.1 Principal Directors’ Duties		205
11.2 Special or Ad Hoc Committees		205
11.3 Board’s Role		206
11.4 Independent Outside Advice		206
1. Market Trends		214
1.1 Technology M&A Market		214
1.2 Key Trends		214
2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company		214
2.1 Establishing a New Company		214
2.2 Type of Entity		214
2.3 Early-Stage Financing		215
2.4 Venture Capital		215
2.5 Venture Capital Documentation		215
2.6 Change of Corporate Form or Migration		215
3. Initial Public Offering (IPO) as a Liquidity Event		215
3.1 IPO v Sale		215
3.2 Choice of Listing		215
3.3 Impact of the Choice of Listing on Future M&A Transactions		215
4. Sale as a Liquidity Event (Sale of a Privately Held Venture Capital-Financed Company)		216
4.1 Liquidity Event: Sale Process		216
4.2 Liquidity Event: Transaction Structure		216
4.3 Liquidity Event: Form of Consideration		216
4.4 Liquidity Event: Certain Transaction Terms		216
5. Spin-Offs		216
5.1 Trends: Spin-Offs		216
5.2 Tax Consequences		216
5.3 Spin-Off Followed by a Business Combination		217
5.4 Timing and Tax Authority Ruling		217
6. Acquisitions of Public (Exchange-Listed) Technology Companies		217
6.1 Stakebuilding		217
6.2 Mandatory Offer		217
6.3 Transaction Structures		217
6.4 Consideration and Minimum Price		217
6.5 Common Conditions for a Takeover Offer/Tender Offer		217
6.6 Deal Documentation		218
6.7 Minimum Acceptance Conditions		218
6.8 Squeeze-Out Mechanisms		218
6.9 Requirement to Have Certain Funds/Financing to Launch a Takeover Offer		218
6.10 Types of Deal Protection Measures		218
6.11 Additional Governance Rights		218
6.12 Irrevocable Commitments		218
6.13 Securities Regulator’s or Stock Exchange Process		219
6.14 Timing of the Takeover Offer		219
7. Overview of Regulatory Requirements		219
7.1 Regulations Applicable to a Technology Company		219
7.2 Primary Securities Market Regulators		219
7.3 Restrictions on Foreign Investments		219
7.4 National Security Review/Export Control		219
7.5 Antitrust Regulations		219
7.6 Labour Law Regulations		220
7.7 Currency Control/Central Bank Approval		220
8. Recent Legal Developments		220
8.1 Significant Court Decisions or Legal Developments		220
9. Due Diligence/Data Privacy		221
9.1 Due Diligence Process		221
9.2 Technology Company Due Diligence		221
9.3 Data Privacy		221
10. Disclosure		221
10.1 Making a Bid Public		221
10.2 Prospectus Requirements		221
10.3 Producing Financial Statements		221
10.4 Disclosure of Transaction Documents		221
11. Duties of Directors		221
11.1 Principal Directors’ Duties		221
11.2 Special or Ad Hoc Committees		221
11.3 Board’s Role		222
11.4 Independent Outside Advice		222
1. Market Trends		238
1.1 Technology M&A Market		238
1.2 Key Trends		238
2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company		239
2.1 Establishing a New Company		239
2.2 Type of Entity		239
2.3 Early-Stage Financing		240
2.4 Venture Capital		240
2.5 Venture Capital Documentation		240
2.6 Change of Corporate Form or Migration		241
3. Initial Public Offering (IPO) as a Liquidity Event		241
3.1 IPO v Sale		241
3.2 Choice of Listing		241
3.3 Impact of the Choice of Listing on Future M&A Transactions		241
4. Sale as a Liquidity Event (Sale of a Privately Held Venture Capital-Financed Company)		241
4.1 Liquidity Event: Sale Process		241
4.2 Liquidity Event: Transaction Structure		241
4.3 Liquidity Event: Form of Consideration		242
4.4 Liquidity Event: Certain Transaction Terms		242
5. Spin-Offs		242
5.1 Trends: Spin-Offs		242
5.2 Tax Consequences		242
5.3 Spin-Off Followed by a Business Combination		242
5.4 Timing and Tax Authority Ruling		243
6. Acquisitions of Public (Exchange-Listed) Technology Companies		243
6.1 Stakebuilding		243
6.2 Mandatory Offer		244
6.3 Transaction Structures		244
6.4 Consideration and Minimum Price		244
6.5 Common Conditions for a Takeover Offer/Tender Offer		245
6.6 Deal Documentation		245
6.7 Minimum Acceptance Conditions		245
6.8 Squeeze-Out Mechanisms		246
6.9 Requirement to Have Certain Funds/Financing to Launch a Takeover Offer		246
6.10 Types of Deal Protection Measures		246
6.11 Additional Governance Rights		247
6.12 Irrevocable Commitments		247
6.13 Securities Regulator’s or Stock Exchange Process		247
6.14 Timing of the Takeover Offer		247
7. Overview of Regulatory Requirements		248
7.1 Regulations Applicable to a Technology Company		248
7.2 Primary Securities Market Regulators		248
7.3 Restrictions on Foreign Investments		248
7.4 National Security Review/Export Control		248
7.5 Antitrust Regulations		248
7.6 Labour Law Regulations		249
7.7 Currency Control/Central Bank Approval		249
8. Recent Legal Developments		249
8.1 Significant Court Decisions or Legal Developments		249
9. Due Diligence/Data Privacy		250
9.1 Due Diligence Process		250
9.2 Technology Company Due Diligence		250
9.3 Data Privacy		250
10. Disclosure		251
10.1 Making a Bid Public		251
10.2 Prospectus Requirements		251
10.3 Producing Financial Statements		251
10.4 Disclosure of Transaction Documents		251
11. Duties of Directors		251
11.1 Principal Directors’ Duties		251
11.2 Special or Ad Hoc Committees		252
11.3 Board’s Role		252
11.4 Independent Outside Advice		252
1. Market Trends		261
1.1 Technology M&A Market		261
1.2 Key Trends		261
2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company		261
2.1 Establishing a New Company		261
2.2 Type of Entity		262
2.3 Early-Stage Financing		262
2.4 Venture Capital		262
2.5 Venture Capital Documentation		262
2.6 Change of Corporate Form or Migration		262
3. Initial Public Offering (IPO) as a Liquidity Event		262
3.1 IPO v Sale		262
3.2 Choice of Listing		262
3.3 Impact of the Choice of Listing on Future M&A Transactions		263
4. Sale as a Liquidity Event (Sale of a Privately Held Venture Capital-Financed Company)		263
4.1 Liquidity Event: Sale Process		263
4.2 Liquidity Event: Transaction Structure		263
4.3 Liquidity Event: Form of Consideration		263
4.4 Liquidity Event: Certain Transaction Terms		263
5. Spin-Offs		263
5.1 Trends: Spin-Offs		263
5.2 Tax Consequences		264
5.3 Spin-Off Followed by a Business Combination		264
5.4 Timing and Tax Authority Ruling		264
6. Acquisitions of Public (Exchange-Listed) Technology Companies		264
6.1 Stakebuilding		264
6.2 Mandatory Offer		264
6.3 Transaction Structures		264
6.4 Consideration and Minimum Price		264
6.5 Common Conditions for a Takeover Offer/Tender Offer		265
6.6 Deal Documentation		265
6.7 Minimum Acceptance Conditions		265
6.8 Squeeze-Out Mechanisms		265
6.9 Requirement to Have Certain Funds/Financing to Launch a Takeover Offer		265
6.10 Types of Deal Protection Measures		265
6.11 Additional Governance Rights		265
6.12 Irrevocable Commitments		266
6.13 Securities Regulator’s or Stock Exchange Process		266
6.14 Timing of the Takeover Offer		266
7. Overview of Regulatory Requirements		266
7.1 Regulations Applicable to a Technology Company		266
7.2 Primary Securities Market Regulators		266
7.3 Restrictions on Foreign Investments		266
7.4 National Security Review/Export Control		267
7.5 Antitrust Regulations		267
7.6 Labour Law Regulations		268
7.7 Currency Control/Central Bank Approval		268
8. Recent Legal Developments		268
8.1 Significant Court Decisions or Legal Developments		268
9. Due Diligence/Data Privacy		269
9.1 Due Diligence Process		269
9.2 Technology Company Due Diligence		269
9.3 Data Privacy		269
10. Disclosure		269
10.1 Making a Bid Public		269
10.2 Prospectus Requirements		269
10.3 Producing Financial Statements		269
10.4 Disclosure of Transaction Documents		269
11. Duties of Directors		270
11.1 Principal Directors’ Duties		270
11.2 Special or Ad Hoc Committees		270
11.3 Board’s Role		270
11.4 Independent Outside Advice		270
1. Market Trends		280
1.1 Technology M&A Market		280
1.2 Key Trends		280
2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company		281
2.1 Establishing a New Company		281
2.2 Type of Entity		281
2.3 Early-Stage Financing		281
2.4 Venture Capital		281
2.5 Venture Capital Documentation		281
2.6 Change of Corporate Form or Migration		281
3. Initial Public Offering (IPO) as a Liquidity Event		282
3.1 IPO v Sale		282
3.2 Choice of Listing		282
3.3 Impact of the Choice of Listing on Future M&A Transactions		282
4. Sale as a Liquidity Event (Sale of a Privately Held Venture Capital-Financed Company)		282
4.1 Liquidity Event: Sale Process		282
4.2 Liquidity Event: Transaction Structure		282
4.3 Liquidity Event: Form of Consideration		282
4.4 Liquidity Event: Certain Transaction Terms		282
5. Spin-Offs		282
5.1 Trends: Spin-Offs		282
5.2 Tax Consequences		282
5.3 Spin-Off Followed by a Business Combination		282
5.4 Timing and Tax Authority Ruling		283
6. Acquisitions of Public (Exchange-Listed) Technology Companies		283
6.1 Stakebuilding		283
6.2 Mandatory Offer		283
6.3 Transaction Structures		283
6.4 Consideration and Minimum Price		283
6.5 Common Conditions for a Takeover Offer/Tender Offer		283
6.6 Deal Documentation		283
6.7 Minimum Acceptance Conditions		283
6.8 Squeeze-Out Mechanisms		283
6.9 Requirement to Have Certain Funds/Financing to Launch a Takeover Offer		283
6.10 Types of Deal Protection Measures		283
6.11 Additional Governance Rights		283
6.12 Irrevocable Commitments		284
6.13 Securities Regulator’s or Stock Exchange Process		284
6.14 Timing of the Takeover Offer		284
7. Overview of Regulatory Requirements		284
7.1 Regulations Applicable to a Technology Company		284
7.2 Primary Securities Market Regulators		284
7.3 Restrictions on Foreign Investments		284
7.4 National Security Review/Export Control		284
7.5 Antitrust Regulations		284
7.6 Labour Law Regulations		284
7.7 Currency Control/Central Bank Approval		284
8. Recent Legal Developments		285
8.1 Significant Court Decisions or Legal Developments		285
9. Due Diligence/Data Privacy		285
9.1 Due Diligence Process		285
9.2 Technology Company Due Diligence		285
9.3 Data Privacy		285
10. Disclosure		285
10.1 Making a Bid Public		285
10.2 Prospectus Requirements		286
10.3 Producing Financial Statements		286
10.4 Disclosure of Transaction Documents		286
11. Duties of Directors		286
11.1 Principal Directors’ Duties		286
11.2 Special or Ad Hoc Committees		286
11.3 Board’s Role		286
11.4 Independent Outside Advice		286
1. Market Trends		296
1.1 Technology M&A Market		296
1.2 Key Trends		296
2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company		296
2.1 Establishing a New Company		296
2.2 Type of Entity		296
2.3 Early-Stage Financing		296
2.4 Venture Capital		297
2.5 Venture Capital Documentation		297
2.6 Change of Corporate Form or Migration		297
3. Initial Public Offering (IPO) as a Liquidity Event		298
3.1 IPO v Sale		298
3.2 Choice of Listing		298
3.3 Impact of the Choice of Listing on Future M&A Transactions		298
4. Sale as a Liquidity Event (Sale of a Privately Held Venture Capital-Financed Company)		299
4.1 Liquidity Event: Sale Process		299
4.2 Liquidity Event: Transaction Structure		299
4.3 Liquidity Event: Form of Consideration		299
4.4 Liquidity Event: Certain Transaction Terms		299
5. Spin-Offs		300
5.1 Trends: Spin-Offs		300
5.2 Tax Consequences		300
5.3 Spin-Off Followed by a Business Combination		300
5.4 Timing and Tax Authority Ruling		300
6. Acquisitions of Public (Exchange-Listed) Technology Companies		300
6.1 Stakebuilding		300
6.2 Mandatory Offer		301
6.3 Transaction Structures		301
6.4 Consideration and Minimum Price		301
6.5 Common Conditions for a Takeover Offer/Tender Offer		302
6.6 Deal Documentation		302
6.7 Minimum Acceptance Conditions		303
6.8 Squeeze-Out Mechanisms		303
6.9 Requirement to Have Certain Funds/Financing to Launch a Takeover Offer		303
6.10 Types of Deal Protection Measures		303
6.11 Additional Governance Rights		304
6.12 Irrevocable Commitments		304
6.13 Securities Regulator’s or Stock Exchange Process		304
6.14 Timing of the Takeover Offer		305
7. Overview of Regulatory Requirements		305
7.1 Regulations Applicable to a Technology Company		305
7.2 Primary Securities Market Regulators		305
7.3 Restrictions on Foreign Investments		306
7.4 National Security Review/Export Control		306
7.5 Antitrust Regulations		306
7.6 Labour Law Regulations		306
7.7 Currency Control/Central Bank Approval		307
8. Recent Legal Developments		307
8.1 Significant Court Decisions or Legal Developments		307
9. Due Diligence/Data Privacy		307
9.1 Due Diligence Process		307
9.2 Technology Company Due Diligence		308
9.3 Data Privacy		308
10. Disclosure		308
10.1 Making a Bid Public		308
10.2 Prospectus Requirements		309
10.3 Producing Financial Statements		309
10.4 Disclosure of Transaction Documents		310
11. Duties of Directors		310
11.1 Principal Directors’ Duties		310
11.2 Special or Ad Hoc Committees		310
11.3 Board’s Role		310
11.4 Independent Outside Advice		310
1. Market Trends		322
1.1 Technology M&A Market		322
1.2 Key Trends		322
2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company		322
2.1 Establishing a New Company		322
2.2 Type of Entity		322
2.3 Early-Stage Financing		322
2.4 Venture Capital		323
2.5 Venture Capital Documentation		323
2.6 Change of Corporate Form or Migration		323
3. Initial Public Offering (IPO) as a Liquidity Event		323
3.1 IPO v Sale		323
3.2 Choice of Listing		324
3.3 Impact of the Choice of Listing on Future M&A Transactions		324
4. Sale as a Liquidity Event (Sale of a Privately Held Venture Capital-Financed Company)		324
4.1 Liquidity Event: Sale Process		324
4.2 Liquidity Event: Transaction Structure		324
4.3 Liquidity Event: Form of Consideration		324
4.4 Liquidity Event: Certain Transaction Terms		324
5. Spin-Offs		325
5.1 Trends: Spin-Offs		325
5.2 Tax Consequences		325
5.3 Spin-Off Followed by a Business Combination		325
5.4 Timing and Tax Authority Ruling		326
6. Acquisitions of Public (Exchange-Listed) Technology Companies		326
6.1 Stakebuilding		326
6.2 Mandatory Offer		327
6.3 Transaction Structures		327
6.4 Consideration and Minimum Price		327
6.5 Common Conditions for a Takeover Offer/Tender Offer		327
6.6 Deal Documentation		328
6.7 Minimum Acceptance Conditions		328
6.8 Squeeze-Out Mechanisms		328
6.9 Requirement to Have Certain Funds/Financing to Launch a Takeover Offer		328
6.10 Types of Deal Protection Measures		328
6.11 Additional Governance Rights		329
6.12 Irrevocable Commitments		329
6.13 Securities Regulator’s or Stock Exchange Process		329
6.14 Timing of the Takeover Offer		329
7. Overview of Regulatory Requirements		329
7.1 Regulations Applicable to a Technology Company		329
7.2 Primary Securities Market Regulators		330
7.3 Restrictions on Foreign Investments		330
7.4 National Security Review/Export Control		330
7.5 Antitrust Regulations		331
7.6 Labour Law Regulations		332
7.7 Currency Control/Central Bank Approval		333
8. Recent Legal Developments		333
8.1 Significant Court Decisions or Legal Developments		333
9. Due Diligence/Data Privacy		334
9.1 Due Diligence Process		334
9.2 Technology Company Due Diligence		334
9.3 Data Privacy		335
10. Disclosure		335
10.1 Making a Bid Public		335
10.2 Prospectus Requirements		335
10.3 Producing Financial Statements		335
10.4 Disclosure of Transaction Documents		336
11. Duties of Directors		336
11.1 Principal Directors’ Duties		336
11.2 Special or Ad Hoc Committees		336
11.3 Board’s Role		336
11.4 Independent Outside Advice		337

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