What is Acquisition?
An acquisition is described as a corporate transaction where one business buys a portion or all of the shares or assets of another company.
Why Make an Acquisition?
Companies acquire other companies for various reasons. These could be for growth strategy, entering a foreign market or could be to gain new technologies.
Key point:Buying more than 50 percent of the stock and other assets of a targets business, helps the acquirer to make decisions without the consent of the other shareholders of the company about the newly acquired assets.