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 ?
This is a relatively new acquisition concept or best practice that few on the team knew about.
* $205 million acquisition and development financing of Long Bay Resorts, Anguilla--The financing will be used for development of a five star luxury resort located on 21.5 acres of pristine beachfront in Anguilla.
In contrast, the acquisition of a foreign corporation that, in turn, owns a domestic corporation, is not an indirect acquisition of such domestic corporation for Sec.
Value of property to be invested upon exercise of the stock acquisition rights shall be JPY 1,000 per stock acquisition right.
Congress is even helping by mandating implementation of software acquisition process improvement programs.
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.
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.
Is it a key geographic acquisition or is the buyer merely trying to increase revenues and planning on taking over the book of business, but not really interested in the personnel of the seller?
Before trial, the IRS had allowed a deduction for accumulated interest and loss on disposal of some acquisition assets and ITW agreed to capitalize its original $1 million damage estimate.
Meeting them will require steady acquisition activity in the months and years to come.
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.