acquisition


Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia.

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 ?
Payton told legislators that in order to better serve the warfighter, the Air Force has made changes to its acquisition process.
In TAM 9731001, the acquiring company had agreed as part of a stock acquisition to make severance payments in excess of those required under the acquired company's premerger plan.
The acquisition of stock in the controlled corporation by the distributing corporation;
Acquisition of Two California Plaza, located next to Maguire Properties One California Plaza, is a 1.
Army Acquisition Support Center (USAASC) supports Army warfighter readiness by developing a world-class professional acquisition workforce, effectively acquiring and stewarding resources, and providing customers with the best possible products and services.
A $498,000 acquisition loan for a three-story mixed-use building in Elmhurst, N.
Spiral acquisition, when properly planned and resourced, offers many unique advantages over traditional procurement processes (modified from Johnson & Johnson, 2002), including:
Is the client seeking a strategic acquisition, one that complements current operations or eliminates a competitor?
The prior regulations also provided that an acquisition and an intended acquisition may be similar, even though the identity of the acquirer, the acquisition's tinting or the actual acquisition's terms are different from the intended acquisition.
When these companies grow through purchase acquisition, they will have a host of new intangible assets, including goodwill, while internally grown technology firms will have virtually no assets.
Secondary in importance only to our international acquisition courses are the various seminars, forums, symposiums, and special offerings that DSMC conducts regularly or occasionally.
16, the types of costs that may be capitalized under paragraph 76 are "direct costs" and "out-of-pocket or incremental costs" rather than recurring internal costs, which may be directly related to an acquisition.