Difference between revisions of "Acquisition"

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ALSO SEE: [[merger]]
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An acquisition is the purchase of one company by another. In a "friendly" acquisition, companies cooperate in negotiations and come to an agreement on terms. The acquiring company assumes control of the target company, usually paying in cash, the acquirer's [[stock]], or a combination of the two.
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Most acquisitions involve a larger company buying a smaller one. Sometimes a smaller firm will take over the management of a larger one; this is called a reverse takeover.
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A hostile acquisition is sometimes called [[takeover]]. In this case, the target company does not want to be bought. 
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== References ==
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<references />
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[[Category:Market Terms]]
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[[Category:Definitions]]

Latest revision as of 14:22, 4 August 2020

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ALSO SEE: merger

An acquisition is the purchase of one company by another. In a "friendly" acquisition, companies cooperate in negotiations and come to an agreement on terms. The acquiring company assumes control of the target company, usually paying in cash, the acquirer's stock, or a combination of the two.

Most acquisitions involve a larger company buying a smaller one. Sometimes a smaller firm will take over the management of a larger one; this is called a reverse takeover.

A hostile acquisition is sometimes called takeover. In this case, the target company does not want to be bought.

References