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Definition of 'Acquisition'

Acquisition is the act of obtaining something, especially a company or property. In the business world, an acquisition is when one company buys another company. The acquiring company is typically larger than the acquired company, and the acquisition is often seen as a way for the acquiring company to expand its business or enter new markets.

There are many different reasons why companies acquire other companies. Some of the most common reasons include:

* To gain access to new markets or customers.
* To acquire new products or technologies.
* To reduce competition.
* To improve efficiency or profitability.
* To diversify the company's business portfolio.

The acquisition process can be complex and time-consuming. It typically involves a number of steps, including:

* Negotiation of the purchase price.
* Due diligence (a thorough investigation of the target company).
* Approval of the acquisition by the acquiring company's board of directors.
* Closing of the acquisition.

Once the acquisition is complete, the acquiring company typically integrates the acquired company into its own operations. This can involve merging the two companies' businesses, combining their employees, and consolidating their operations.

Acquisitions can be a risky business. There is always the possibility that the acquisition will not be successful, and the acquiring company may end up losing money. However, when acquisitions are successful, they can be a very effective way for companies to grow and improve their businesses.

In addition to the financial benefits, acquisitions can also have a number of other benefits, such as:

* Increased market share.
* Enhanced brand awareness.
* Improved research and development capabilities.
* Increased access to capital.
* Increased opportunities for employee growth and development.

Overall, acquisitions can be a very effective way for companies to grow and improve their businesses. However, it is important to carefully consider all of the risks involved before making an acquisition decision.

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