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Acquisition

By Tia Dang | last updated 7th December 2020


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What is Acquisition?

An acquisition is described as a corporate transaction where one business buys a portion or all of the shares or assets of another company.

Why Make an Acquisition?

Companies acquire other companies for various reasons. These could be for growth strategy, entering a foreign market or could be to gain new technologies.

Key point:Buying more than 50 percent of the stock and other assets of a targets business, helps the acquirer to make decisions without the consent of the other shareholders of the company about the newly acquired assets.

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