What must occur immediately after a definitive agreement is signed between two companies regarding a purchase?

After the signing of a definitive agreement in a merger or acquisition scenario, it is standard practice for the involved companies to issue a joint press release. This press release serves multiple purposes: it communicates important information about the transaction to the public and shareholders, helps manage market expectations, and sets a transparent tone regarding the motives and anticipated benefits of the acquisition.

Issuing a joint press release also aligns with regulatory requirements, as it provides necessary disclosures to the market about significant transactions, which can influence share prices and investor decisions. It is crucial for maintaining trust and fairness in the market, ensuring that all stakeholders receive the same information at the same time.

While notifying shareholders, conducting audits, or holding press conferences may also be part of the overall communication and regulatory process that follows a definitive agreement, they are not mandatory actions immediately after signing. The primary and immediate step is sharing the news with the public through a joint press release.