Tom’s IT Pro Business Glossary I

In business, one company can possess another through the purchase of its shares or assets.

Significance

Acquisition is common among growing companies that want to increase market share in a given sector and among companies looking to expand into new or complementary markets. By taking over the customer base of another company rather than through in-house sales, growth can be accomplished very quickly. However, business and cultural conflicts are common in such mergers unless great preemptive care has been taken.

Click here to return to the main index.