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Acquistion, References: - Coggle Diagram
Acquistion
Types of Acquistion
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Market extension acquisition: Variation of horizontal acquisition but the acquirer and the target are significantly distant geographically
Vertical acquisition: One company acquires another one which is in a different position of the supply chain
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Reverse takeover or SPAC: A private company (often the smallest) acquires a public one (often the largest) in order to form a public business and avoid the IPO process
What is an Acquisition
An acquisition is an action related to external growth in which 1 company (the acquirer) buys most or all of the shares in another company (the target) in order to take control of the operations within said company.
Acquisitions are usually managed by investment bankers and lawyers which often make part of an internal team inside the company or a private equity firm.
Private equity firm: An investment management company which focuses on buying and managing companies before selling them. These also provide financial backing.
This action is often agreed upon by both companies, but in certain cases in which the acquirer bought all the shares in the second company against their wishes, the acquisition becomes a “takeover”.
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