acquisition
noun
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Definition of acquisition
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Other Words from acquisition
, -shə-nᵊl \
adjective
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noun
Examples of acquisition in a Sentence
Recent Examples on the Web
But recent acquisition Hogan is the perfect fit for a squad that was full of nearly moments during a torrid campaign last year. — SI.com, "Championship Golden Boot: 10 Players Who Have the Credentials to Finish as Top Goalscorer," 23 Aug. 2019 Birmingham real estate acquisition and development firm Sanders Capital Partners has acquired a $4.2 million Fort Payne retail center. — William Thornton | [email protected], al, "Sanders Partners acquires $4.2 million Fort Payne property," 20 Aug. 2019 Despite the fact that many likely aggressors are still digesting recent acquisitions, there is already talk in industry circles of an impending second wave of media mergers. — The Economist, "Viacom and CBS agree to reunite," 15 Aug. 2019 But challengers have emerged with the recent acquisition of Travis Demeritte in right field, and prospect Daz Cameron is waiting in the wings in center field at Triple-A Toledo. — Anthony Fenech, Detroit Free Press, "Despite JaCoby Jones' uneven season, Detroit Tigers see him starting in center field," 13 Aug. 2019 This facial tattoo, applied with cactus ink, is just discernible in the exhibition ambrotype, which is among the National Portrait Gallery’s most recent acquisitions. — Meilan Solly, Smithsonian, "How the Camera Introduced Americans to Their Heroines," 9 July 2019 The company was not performing well before the acquisition and the business has not improved dramatically since. — Jason Del Rey, Vox, "Inside the conflict at Walmart that’s threatening its high-stakes race with Amazon," 3 July 2019 Her statement was in response to Braun's recent acquisition of Big Machine Records, which holds the rights to Swift's first six albums, all of which are multiplatinum. — NBC News, "Justin Bieber criticizes Taylor Swift for 'crossing a line' with Scooter Braun post," 1 July 2019 Disney's recent acquisition of 20th Century Fox has opened up new possibilities. — Sonaiya Kelley, chicagotribune.com, "‘Spider-Man: Far From Home’ lays the groundwork for the future of Marvel and Tom Holland," 29 June 2019These example sentences are selected automatically from various online news sources to reflect current usage of the word 'acquisition.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
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More Definitions for acquisition
acquisition
nounFinancial Definition of acquisition
What It Is
An acquisition is the purchase of all or a portion of a corporate asset or target company.
How It Works
An acquisition is commonly mistaken with a merger – which occurs when the purchaser and the target both cease to exist and instead form a new, combined company.
When a target company is acquired by another company, the target company ceases to exist in a legal sense and becomes part of the purchasing company. Acquisitions are commonly made by using cash or debt to purchase outstanding stock, but companies can also use their own stock by exchanging it for the target firm's stock. Acquisitions can be either hostile or friendly.
For example:
Let's assume Company XYZ wants to acquire Company ABC. Company XYZ starts to buy ABC shares on the open market, but once Company XYZ acquires 5% of ABC, it must formally (and publicly) declare to the Securities and Exchange Commission (SEC) how many shares it owns. Company XYZ must also state whether it intends to buy ABC or just hold its existing shares as an investment.
If Company XYZ wants to proceed with the acquisition, it will make a "tender offer" to ABC's board of directors, followed by an announcement to the press. The tender offer will indicate, among other things, how much Company XYZ is willing to pay for ABC and how long ABC shareholders have to accept the offer.
Once the tender offer is made, ABC can accept (1) the terms of the offer, (2) negotiate a different price, (3) use a "poison pill" or other defense to avert the deal, or (4) find another company, who hopefully will pay as much or more as XYZ is offering, to buy them.
If ABC accepts the offer, regulatory bodies then review the transaction to ensure the combination does not create a monopoly or other anti-competitive circumstances within the industries involved. If the regulatory bodies approve the transaction, the parties exchange funds and the deal is closed.
Why It Matters
Companies acquire target companies as a growth strategy because it can create a bigger, more competitive, and more cost-efficient entity. This synergy -- the idea that the two companies together are more valuable to the shareholders than they are apart -- is elusive, but it is the idea used to justify most acquisitions. A well-executed acquisition can be the crowning jewel of a CEO's career.
Knowing how to analyze acquisitions can put individual investors in a great position to profit from the stock price fluctuations that accompany them.
Click here to learn How to Play the Buyout Game: 3 Tips for Finding the Best Deals
Source: Investing Answers
acquisition
noun
English Language Learners Definition of acquisition
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acquisition
noun
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Kids Definition of acquisition
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