An acquisition refers to the process where one company purchases most or all of another company’s shares or assets to gain control of that company. This can occur through various means, including cash transactions, stock swaps, or a combination of both.

Characteristics
– Control: The acquiring company gains control over the target company’s operations and assets.
– Integration: The acquired company is often integrated into the acquiring company’s existing operations, which may involve restructuring.
– Strategic Purpose: Acquisitions are typically pursued to achieve strategic goals, such as expanding market share, entering new markets, or acquiring new technologies.

Examples
– Corporate Acquisition: A large technology firm acquiring a smaller startup to enhance its product offerings and innovate faster.
– Horizontal Acquisition: A beverage company purchasing another beverage company to increase its market presence and reduce competition.
– Vertical Acquisition: A car manufacturer acquiring a parts supplier to streamline its supply chain and reduce costs.