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N. K. Gupta posted an Question
April 05, 2021 • 15:59 pm 30 points
  • UGC NET
  • Commerce

Acquisition and their types in short forms

acquisition and their types in short forms. acquisition meaning and their types

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  • Sangeeta jha best-answer

    When a company purchases all or most of the assets of another company to gain control of that company, is called Acquisition. Purchasing more than 50% of another companies stock and other assets allows the acquirer to make decisions about the newly acquired assets. So,acquisition means taking over another company and clearly establishing itself as the new owner. Purpose of Acquisition: 1) economies of scale 2) diversification 3) greater market share 4) cost reduction 5) to enter foreign market 6) decrease competition 7) to gain new technology 8) a growth strategy Types of Acquisitions: 1) Horizontal Acquisition: When a company acqires another company in the same business i.e.a. competitor. 2)Vertical Acqisition : When a company acqires either a supplier of inputs or a distributer of its products or a company to which it sells the product. 3) Conglomerate Acquisition: When a company acqires a company in a completely different kind of business. 4) Congeneric Acquisition: When companies sharing a similarity come together. Similarity is in case of technology or distribution channel not in case of production.

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    very best answer for me thenk you so much mam

  • Rucha rajesh shingvekar best-answer

    An acquisition is when one company purchases most or all of another company's shares to gain control of that company. Purchasing more than 50% of a target firm's stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company's other shareholders.

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