Factors that should be considered in determining which entity is the acquirer:

1. Relative voting rights in the combined entity after combination: Acquirer is usually the entity whose owners as a group entity after the combination retain or receive the largest portion of the combined voting rights, after considering the existence of any unusual or special voting arrangements and options, warrants or convertible notes.
2. No majority interest in the combined entity but single large minority interest: Acquirer is usually the entity whose single owner or group or organised voters holds the largest minority voting interest in the combined entity.
3. Composition of the governing body of the combined entity: Acquirer is usually the entity whose owners have the ability to elect or appoint a majority of the members of the governing body.
4. Senior management of the combined entity: Acquirer is usually the entity whose (former) management entity dominates the combined management.
5. Terms of the exchange of equity interests: Acquirer is usually the entity that pays a premium over pre-combination fair value of the other entity or entities.
6. Acquirer is usually the entity that transfers the cash or other assets, or incurs the liabilities.Acquirer is usually the entity that issues its equity interests. However, in a reverse acquisition, the acquiree may issue equity interests.Acquirer is usually the entity whose relative size (measured in, for example, assets, revenues or profit) is significantly greater than that of the other combining entities.

(Any 5 points @ 1 mark each = 5 marks)