Corporate acquisition

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Corporate acquisition

The acquisition of one firm by another firm.


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.
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Corporate acquisition analysis in many ways is fundamentally different from the analysis of publicly-traded securities.
We find that firms with stronger shareholder rights had a higher firm value, higher profits, higher sales growth, lower capital expenditures, and made fewer corporate acquisitions," the authors wrote.
He is currently focusing on corporate acquisitions and analysis for the hotel chain.

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