hmu.ai
Back to Business Dictionary
Business Dictionary

Acquisition

Definition

An asset or object bought or obtained, typically by a library or museum.

Deep Dive

In a business context, acquisition refers to the strategic process where one company purchases another company or a significant controlling stake in it. This action is typically driven by a desire to gain market share, access new technologies, expand into new markets, eliminate competition, acquire talent, or leverage synergies to achieve greater operational efficiency and profitability. The acquiring company takes over the target company's assets, liabilities, and operations, often integrating them into its existing structure.

Examples & Use Cases

  • 1Facebook acquiring Instagram to expand its social media dominance and reach a younger demographic
  • 2Microsoft acquiring LinkedIn to bolster its professional networking and enterprise software offerings
  • 3Amazon acquiring Whole Foods to enter and expand its presence in the physical grocery market.

Related Terms

MergerDivestitureDue Diligence

Part of the hmu.ai extensive business and technology library.