Glossary - Acquisition
Acquisition refers to the process where one company takes over controlling interest in another company, either by purchasing the majority of its stock shares, assets, or both, effectively making the acquired company a subsidiary or part of the acquiring company. This can be done to expand market reach, increase shareholder value, diversify products or services, or eliminate competition.
Also known as
- Takeover
- Merger
- Buyout
Use cases examples
- Merger Agreement: The acquisition of Company A by Company B will be executed as outlined in the terms of the Merger Agreement, securing Company B as the surviving entity.
- Press Release: Company X successfully completes the acquisition of Company Y, marking a significant expansion of its operations and product line.
Considerations for investors
- Evaluating the strategic fit and synergy between the acquiring and acquired companies.
- Assessing the financial health and valuation of the target company.
- Considering the potential for return on investment post-acquisition.
- Analyzing the risk of integration and potential culture clashes that could affect performance.
Considerations for founders
- The potential loss of control over the company post-acquisition.
- The importance of thorough due diligence to ensure fair valuation and terms.
- Negotiating post-acquisition roles for founders and key employees.
- Understanding the impact on existing shareholders and stock option holders.
Get to know our world class tools and services
Transform your operations with world class tools
We have created several tools to help investors spot the best opportunities and manage their portfolio.
Let's unlock your business potential with Automations
Embrace the future with our tailored subscription service that combines strategic planning and practical implementation.