Acquisition

An acquisition occurs when one company takes over another, either by purchasing its shares or assets. Acquisitions are often used as a strategy for expanding into new markets, acquiring valuable intellectual property, or gaining a competitive edge. In an acquisition, the purchasing company (the acquirer) buys the target company, which may retain its brand and operational autonomy depending on the terms of the deal. Acquisitions can be either friendly, where both companies agree on the sale, or hostile, where the acquirer bypasses the target's board and goes directly to its shareholders. There are several types of acquisitions, including horizontal (where companies in the same industry merge to reduce competition), vertical (where companies in the same supply chain join forces), and conglomerate acquisitions (where companies in unrelated industries combine). Acquisitions often involve significant financial resources and legal considerations, as they can affect market share, competitive positioning, and regulatory compliance.