• An acquisition is a business combination where one company buys most or all of the shares of another company.

  • If a firm buys more than 50% of the shares of a target company, it effectively gains control of that company.
  • Acquisitions are often friendly, while takeovers can be hostile; the merger creates an entirely new organization of two separate companies.
  • Acquisitions are often made with the help of an investment bank, as these are complex transactions with legal and tax implications.
  • Acquisitions are closely related to mergers and acquisitions.