Acquisition

An acquisition is when one company purchases another company. The purchasing company generally absorbs the target company’s operations, workforce, and products.

While there are many reasons why a company might choose to pursue an acquisition, the most common motivations are to gain market share, expand into new markets, or acquire new technology or talent.

There are several types of acquisitions, but the most common are asset acquisitions and stock acquisitions. In an asset acquisition, the purchasing company buys the target company’s assets, while in a stock acquisition, the purchasing company buys the target company’s stock.

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