Acquisition

Definition

An acquisition is when one company purchases most or all of another company's shares to gain control of that company. It allows the acquiring company to grow its operations, enter new markets, or acquire new technologies without having to create them from scratch.

Related terms

Merger:

A merger involves two companies coming together to form a new entity, sharing resources, staff, and management equally.

Takeover: A takeover is an aggressive acquisition where the acquiring company takes control of the target company without mutual agreement or consent.

Consolidation: Consolidation occurs when multiple companies combine to form a new entity, often leading to increased market share and reduced competition in their industry