In a friendly acquisition, how is the takeover bid typically received by the target company?

In a friendly acquisition, the takeover bid is typically received positively by the target company management, which indicates that they consent to it. This kind of acquisition usually involves negotiations where both the acquiring company and the target company come to an agreement that is mutually beneficial. Management of the target company generally believes that the terms of the acquisition offer will enhance shareholder value, provide resources for further growth, or improve the overall prospects of the business.

This consent can take many forms, such as endorsements from the board, public announcements of the benefits of the merger, and participation in the negotiation process. The willingness of the target company's management to engage with the acquiring entity contrasts significantly with scenarios in a hostile takeover, where management would typically oppose the bid outright. In this context, the ability to negotiate and collaborate signifies a positive reception to the acquisition proposal.