acquisition


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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 ?
Already, changes in the acquisition community have resulted in some successes for the Air Force, Payton said.
59 million acquisition financing--a portfolio of four all-suite hotels, Texas--The financing will be used for the acquisition and conversion of 519 keys to a Hyatt Place brand, which is Global Hyatt's new mid-scale service brand.
In the absence of evidence to the contrary, consideration transferred by the acquirer at the acquisition date is presumed to be the best evidence of the fair value of the acquirer's interest in the acquiree.
2 acquisition was initiated in August 2002 and has gone through requirements definition, market research, competitive source selection, Defense Acquisition Board (DAB), contract award, architecture design, associated software builds, and will be installed at the Transformation Center, Langley AFB, Virginia in June 2005 to begin formal development and operational testing--all within 34 months.
In one example, an acquirer replaced the entire management team after an acquisition, which was not, in and of itself, bad; but when combined with a high purchase price, substantial financial leverage and a volatile revenue stream, the resulting disruption proved catastrophic.
As is the case with all acquisitions, the bank will be looking to cut costs, so the seller will want to know the bank's plans with regard to the seller's personnel after the acquisition.
Based on the proximity to Tuscarora's existing plants in the region and inherent consolidation potential, the acquisition offers considerable synergies.
The DAU/DSMC international acquisition continuous learning program consists primarily of two annual international seminars and a biannual forum.
This paper set out to use the two metaphors, acquisition and participation, to investigate the learning strategies employed by students preparing for an international examination, TOEIC, on a self-directed basis.
In any acquisition, we try to learn from the acquired firm.
The acquisition of stock in any successor corporation of the distributing corporation or controlled corporation by reason of holding stock in such distributing or controlled corporation; and
However, 94-77 did not address the federal tax treatment of severance payments made as part of the acquisition of property, including a deemed acquisition of assets.