What is 'Acquisition'?

An acquisition is a corporate action in which one company buys most or all of another company's shares to assume control.

Sharper Insight. Smarter Investing. Manage Preferences TERM OF THE DAY Acquisition An acquisition is a situation whereby one company purchases most or all of another company's shares in order to take control. An acquisition occurs when a buying company obtains more than 50% ownership in a target company. As part of the exchange, the acquiring company often purchases the target company's stock and other assets, which allows the acquiring company to make decisions regarding the newly acquired assets without the approval of the target company's shareholders. Term Of The Day Selected By Mark Painter President EverGuide Financial Group, LLC Berkeley Heights, NJ www.everguidefinancialgroup.com/ Breaking it Down: When huge deals occur, they dominate the business section of the newspaper. However, there are far more mergers and... Read More Related to "Acquisition" Mergers And Acquisitions: Understanding Takeovers In the language of mergers and acquisitions, battleground terms meld with bizarre metaphors to create a unique vocabulary. Read More The Top Reasons Why M&A Deals Fail A significant number of M&A transactions result in failure. Here are the top reasons why it happens. Read More How mergers and acquisitions can affect a company M&A can have a profound effect on a company's growth prospects and outlook, but with a significant degree of risk. Read More Related Definitions Takeover A takeover occurs when an acquiring company makes a bid in an effort to assume control of a target company, often by purchasing a majority stake. Read More Merger A merger is an agreement that unites two existing companies into one new company. Read More Economies of Scale Economies of scale refer to reduced costs per unit that arise from increased total output of a product. Read More Synergy Synergy is the concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts. Read More You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe  |  Manage Subscriptions Investopedia, LLC, A Division of IAC. 114 West 41st St, floor 8, New York NY 10036 Copyright © 2018, Investopedia, LLC. All Rights Reserved Follow Us: