Acquire

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Financial Terms and Glossary

Acquire

To acquire means to gain ownership or control of a company, asset, or business operation through a purchase or merger. In the business world, acquisitions are common strategies for companies looking to expand their operations, enter new markets, or gain competitive advantages. When a company acquires another, it may purchase the target company’s assets, shares, or entire business operations, integrating them into its own.

Example

If Company A buys all the shares of Company B, it acquires full ownership and control of Company B’s operations and assets.

Key points

• Refers to gaining ownership or control of another company or asset.

• Commonly used as a strategy for expansion and gaining competitive advantages.

• Can be done through purchasing shares, assets, or entire business operations.

Quick Answers to Curious Questions

Why do companies acquire other businesses?

Companies acquire other businesses to expand their operations, enter new markets, gain newcustomer bases, or achieve economies of scale.

What are the different types of acquisitions?

Acquisitions can be asset purchases, stock purchases, or mergers, depending on what the acquiring company aims to gain and how they choose to structure the deal.

What is the difference between a friendly and hostile acquisition?

In a friendly acquisition, the target company agrees to the purchase, while in a hostile acquisition, the acquiring company takes control without the consent of the target company’s management.