What Do You Mean By Acquisition?

What Do You Mean By Acquisition?

1 Answer

  1. When a company buys most or all shares of another company to gain control of that company, it is known as acquisition. Any company that buys more that 50% shares of another company becomes a decision maker for the acquired company even if the company permits it or not. Acquisition can be willful or hostile.
    Acquisitions generally take place between small and medium sized firms.
    Acquisitions are done for several reasons like growing the scale of business, wanting to enter a new market, to gain access to new technology, etc.

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