acquisition
Business
(noun)
One firm purchasing another organization.
Management
(noun)
The act or process of acquiring.
Accounting
Examples of acquisition in the following topics:
-
M&A Trends
- Today, the list of recent acquisitions is expanding rapidly.
- The mergers and acquisitions by these five companies alone represents the acquisition of hundreds of business and hundreds of billions of dollars.
- Let's look at a few of the largest, most recent acquisitions from some of these influential companies to appreciate the scope and frequency of modern acquisition strategies.
- Microsoft - Since 1987, Wikipedia lists a total of 197 acquisitions for Microsoft.
- The race for new technological advantages through acquisition is dynamic, and the definition of the modern trend in strategic alliances is definitely along the lines of technological acquisition.
-
Growth through buying out other companies
- However, small, fast-growing companies also have the possibility of growing by acquisition.
- An acquisition strategy for a fast-growing start-up can bring many advantages.
- An acquisition strategy can also be pursued to enable growth in new geographic markets.
- A further gain from an acquisition may be additional qualified personnel who might also be able to strengthen the original firm.
- The acquisition of other firms can also be a chance to gain technological knowhow, or even new technologies in the form of patents.
-
Mergers and Acquisitions (M&As)
- Mergers and Acquisitions (M&A) refers to the aspect of corporate strategy, corporate finance, and management dealing with the buying and selling of different companies and similar entities that can help an enterprise grow rapidly.
- Mergers and Acquisitions have, at times, failed to add as much value as initially imagined by the parties involved.
- Mergers and Acquisitions (M&A) refers to the aspect of corporate strategy, corporate finance, and management dealing with the buying and selling of different companies and similar entities that can help an enterprise grow rapidly.
-
Amortized Cost Method
- Debt held to maturity is shown on the balance sheet at the amortized acquisition cost.
- Debt held to maturity is shown on the balance sheet at the amortized acquisition cost.
- To find the amortized acquisition cost the securities are amortized like a mortgage or a bond.
- Debt held to maturity is shown on the balance sheet at the amortized acquisition cost.
- To find the amortized acquisition cost the securities are amortized like a mortgage or a bond.
-
Consolidation Strategy
- In business, consolidation refers to the mergers and acquisitions of many smaller companies into much larger ones for economic benefit.
- In strategic management, it often refers to the mergers and acquisitions of many smaller companies into much larger ones.
- M&A is different from joint ventures and other forms of strategic alliance, as mergers or acquisitions aim to create a single organization.
- In an acquisition, one organization buys out another, with the acquired company usually placing its processes under the brand name of the acquirer.
- "Meta-analyses of Post-acquisition Performance: Indications of Unidentified Moderators."
-
Reporting Assets
- A business must report an asset's acquisition cost, how it is depreciated, any subsequent expenditures tied to it, and how it is disposed.
- The acquisition cost is how the asset is valued on a business's balance sheet.
- The acquisition cost equals the amount of cash and other property given up to acquire it and place it into operation.
- Costs associated with fixing used property so it can be used by the company are included in the acquisition costs.
- Explain how to value and report an asset from its acquisition to its disposal
-
Valuing the Target and Setting the Price
- In order to prepare an appropriate bid in the mergers and acquisition process, the buyer must be able to accurately value the target company.
- Due diligence can be defined as the examination of a potential target for merger, acquisition, privatization, or a similar corporate finance transaction– normally by a buyer.
- Due diligence involves a reasonable investigation focusing on material future matters and the asking of certain key questions, including how do we buy, how do we structure the acquisition, and how much do we pay?
- This is in order to reduce the number of failed mergers and acquisitions.
- As synergy plays a large role in the valuation of acquisitions, it is paramount to get the value of synergies right.
-
The Role of an Advisor
- The advisory group of an investment bank is primarily concerned with facilitating the mergers and acquisitions of businesses.
- M&A stands for "mergers and acquisitions", which refers to the the buying, selling, dividing and combining of different firms.
- In order for the acquisition to take place, the two boards and leadership must be agree on the terms.
-
Types of Private Financing Deals: Going Private and Leveraged Buyouts
- LBOs use debt to secure an acquisition and the acquired assets service the debt.
- A leveraged buyout (LBO) is an acquisition (usually of a company, but it can also be single assets like a real estate) where the purchase price is financed through a combination of equity and debt, and in which the cash flows or assets of the target are used to secure and repay the debt .
- As financial sponsors increase their returns by employing a very high leverage (i.e., a high ratio of debt to equity), they have an incentive to employ as much debt as possible to finance an acquisition.
- Depending on the size and purchase price of the acquisition, the debt is provided in different tranches:
-
Settlement of the New Land
- However, with the success of the American Revolution, westward expansion and territorial acquisition of the North American continent became a U.S.
- Aggressive negotiations with Spain brought acquisition of some Floridian territory and Jefferson's Louisiana Purchase of 1803 more than doubled the size of the United States.
- In the mid nineteenth century, war with Mexico resulted in the acquisition of Texas, much of the southwest, the Gadsden Purchase, and California; stretching the scope of the United States from the Atlantic to Pacific.