Question

What do you mean by acquisitions ? Explain the types of Acquisitions .​

Answer 1

Answer:

An acquisition is when one company purchases most or all of another company's shares to gain control of that company. ... Acquisitions, which are very common in business, may occur with the target company's approval, or in spite of its disapproval.

Answer 2

Explanation:

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An acquisition is when one company purchases most or all of another company's shares to gain control of that company. ... Acquisitions, which are very common in business, may occur with the target company's approval, or in spite of its disapproval.

There are five main types of acquisitions:-

Value creating – Value creating is where a company acquires another company, improves its performance and then sells it again for a profit.

Consolidating – This is where a company acquires another company to remove competition from an over-supplied market.

Accelerating – Accelerating is when a larger company acquires a smaller company and uses its greater resources to accelerate market access for the smaller company’s products.

Resource acquiring – This is where a company acquires other companies to gain resources, skills, intellectual property, technologies or market positioning they need, because it is more cost effective than developing their own.

Speculating – Speculating is when a larger company acquires a smaller company with a new product, with the aim of cashing in on its future growth potential.