What is an Acquisition? 

An acquisition typically involves a larger company buying or acquiring a smaller company. An acquisition can involve collaboration between two companies. However, it can also take place without the consent of the acquired company, which is known as a “hostile takeover”. Acquisitions and mergers have similar motivations. These include increasing market share, diversifying the portfolio, expanding into new markets or regions, and creating operational efficiencies.

Acquisition example: Amazon acquired Whole Foods. This gave Amazon a physical presence in retail. It also allowed them to enter the grocery business.