In a corporate acquisition, it is the board of the company being acquired that has the most power in the process. As representatives of the corporate shareholders and management, they have to evaluate the potential acquisition and take action. Once the potential buyer (company) makes an offer, the board of directions has a few options:
1) They can accept the offer if it is considered favorable
2) They can bargain for a better offer
Or, in the case of a hostile takeover attempt:
3) They can reject the offer and use strategies to disinterest the potential buyer
4) They can try to find a company that offers more favorable terms
Either way, the board of directors is at the center of the decision-making process, and what they do can have powerful consequences – positive or negative – for the shareholders and management that they represent.