Acquisition strategies
Acquisition strategies
An acquisition is defined as the purchase of a company’s shares by another company. An organization can buy another one with cash, stock, debt recovery, or assets. When a firm is purchasing more than 50% of the assets, the acquirer is allowed to make decisions without the approval of the other shareholders. So, by doing an acquisition, it doesn’t create a new organization as is the case for mergers. The terms “mergers” and “acquisitions are often used in the same way, but their meaning is different. Indeed, a merger is when two companies are combining into a new entity. In both cases, mergers and acquisitions directly impact the company’s culture, ownership, and way of doing things. The business term “acquisition strategy” is a method used by companies to purchase other firms in order to be more profitable. It refers to the concept of synergy which suggests that companies are better combined and more valuable than separate.
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