ACQUISITION

An action of a corporation wherein a company purchases most, if not all, of the ownership stakes of a target company for the purpose of assuming control over a target firm. Acquisition are often done as a part of the growth strategy of a company whereby it is more advantageous to take over the operations and niche of a company rather than expanding on its own. The acquisition are commonly paid in cash, the stock of the acquiring company or a combination of the two.

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