acquisition

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Related to Acquisitions: Mergers and acquisitions

Acquisition

When a firm buys another firm.

Acquisition

An investment in which a company or person buys a publicly-traded company, or, more commonly, most of the shares in that company. For example, if Corporation A buys 51% or more of Corporation B, then Corporation B becomes a subsidiary of Corporation A, and the activity is called an acquisition. A single investor may buy out a publicly-traded company; one calls this "going private." Acquisitions occur in exchange for cash, stock, or both. Acquisitions may be friendly or hostile; a friendly acquisition occurs when the board of directors supports the acquisition and a hostile acquisition occurs when it does not. See also: Antitakeover measure.

acquisition

The purchase of an asset such as a plant, a division, or even an entire company. For example, the Walt Disney Company made a major acquisition in 1996 when it purchased Capital Cities/ABC, Inc., in order to extend its reach in the entertainment industry.

Acquisition.

If a company buys another company outright, or accumulates enough shares to take a controlling interest, the deal is described as an acquisition.

The acquiring company's motive may be to expand the scope of its products and services, to make itself a major player in its sector, or to fend off being taken over itself.

To complete the deal, the acquirer may be willing to pay a higher price per share than the price at which the stock is currently trading. That means shareholders of the target company may realize a substantial gain, so some investors are always on the lookout for companies that seem ripe for acquisition.

Sometimes acquisitions are described, more bluntly, as takeovers and other times, more diplomatically, as mergers. Collectively, these activities are referred to as mergers and acquisitions, or M&A, to those in the business.

acquisition

see TAKEOVER.

acquisition

see TAKEOVER.

acquisition

The act of obtaining ownership of something.It may occur through derivative acquisition—procured from another who previously owned the thing—or though original acquisition, which is new creation such as land made when the ocean recedes.

References in periodicals archive ?
Although DoD guidance encourages innovation by program managers, the organizational culture and a biannual budget process have not produced any significant changes for more efficient materiel acquisitions.
History demonstrates that transformational acquisitions are almost unrivaled in their staggering ability to destroy value for shareholders--with AOL Time Warner one such example in a long list.
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Control is generally indicated by ownership by one company (directly or indirectly) of over 50% of the outstanding voting shares of another company For Federal income tax purposes, the same concept applies to applicable asset acquisitions under Sec.
Saint-Gobain's growth strategy, like that of many firms, requires acquisitions.
Third, prohibited acquisitions were not limited to those occurring during the four-year period beginning two years before the distribution.
WASHINGTON -- Changes in the Air Force's acquisition community have already resulted in quicker delivery of capability to the warfighter, according to the assistant secretary of the Air Force for acquisition.
Recognizing gains on acquisitions is not permitted using current accounting standards.
We have a track record of highly successful acquisitions such as the acquisition of the CommonWealth portfolio in addition to attracting institutional equity partners and producing superior returns through joint ventures.
16, Business Combinations, entities that make acquisitions can include certain related costs in the acquisition price.
And finally, I want to lead the acquisition enterprise component of the overall naval enterprise.
Many acquisitions fail because the acquirer's management is not ready for its expanded role.

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