acquisition
ak-wih-ZIH-shun
/ˌæk.wɪˈzɪʃ.ən/
The purchase or taking over of one company, asset, or property by another business entity.
In corporate finance, an acquisition implies one dominant entity purchasing another, unlike an equal merger.
The story behind the word. From Latin 'acquisitio', derived from 'acquirere' (to get in addition, from 'ad-' to + 'quaerere' to seek). It originally meant obtaining knowledge before applying specifically to corporate buyouts.
Word relationships
- takeover: Takeover often carries aggressive or hostile connotations, whereas acquisition is neutral.
- divestiture: The selling off of corporate subsidiary assets or business units.
Commonly confused with
- merger: A merger is a mutual combination of equals; an acquisition is a straight purchase of one entity by another.
Word family
- acquire (verb): To gain ownership of.
- acquisitive (adjective): Eager to acquire assets.
Collocations
- mergers and acquisitions
- acquisition strategy
- hostile acquisition
Idioms & expressions
- acquisition target
Example sentences
- "The technology corporation completed its multi-billion dollar acquisition of the artificial intelligence firm." Corporate transaction
- "The enterprise expanded its regional reach through aggressive strategic acquisitions." Strategic expansion
Memory hook
In an ACQUISITION you ACQUIRE another firm. Purchasing another business.
When not to use
Do not confuse with a 'merger', where two equal companies combine into one new firm.
Fun facts
- A 'hostile acquisition' occurs when a buyer bypasses board approval to purchase stock directly from shareholders.
Related words
Explore more words
retention, dominate, procurement, transaction, annexation, requisition
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