Is an acquisition a merger?

As a result, acquiring companies may refer to an acquisition as a merger even though it’s clearly a takeover. An acquisition takes place when one company takes over all of the operational management decisions of another company. Acquisitions require large amounts of cash, but the buyer’s power is absolute.

What is a business acquisition?

An acquisition is a financial transaction that occurs when one business acquires the majority or all of its target’s shares. The goal of an acquisition is to gain control of the target’s operations, including its assets, production facilities, resources, market share, customer base, and other elements.

What is an example of an acquisition?

An acquisition often allows the acquiring company to move into a new or related industry, expanding its offerings by tapping into the acquired company's existing customer base and services. An example of this type of transaction was Amazon's acquisition of Whole Foods in 2017.