Acquisition

The term acquisition commonly refers to the takeover of one business by another. Sometimes the acquisition will involve the purchase of the entire share capital of a company. In other situations the acquisition is off certain trading assets rather than an actual company. Acquisitions can be financed by paying cash. Often they also involve the issue of shares by the acquiring business given to the shareholders of the business being sold. Acquisitions are subject to regulatory control via the competition authorities. For larger, crossborder acquisitions, regulation by authorities such as the European Competition Commission must also be taken into account.

 

reference: Business Studies / Accounting. Accounts & Finance Glossary. Jim Riley BA(Hons) MBA FCA // tutor2u

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