Merger of equals: This is a merger between two companies of approximately equal size and strength. Stock acquisition: In a stock acquisition, the acquiring company purchases the target company's stock, and the target company becomes a subsidiary of the acquiring company. Asset acquisition: In an asset acquisition, the acquiring company purchases the target company's assets, such as its equipment, inventory, and customer lists. Management buyout (MBO): In an MBO, the managers of a company buy out the majority shareholders of the company. Leveraged buyout (LBO): In an LBO, the acquiring company finances the purchase of the target company with a combination of debt and equity.