Acquisition is a business transaction in which one company purchases and gains control over another company. It is a core part of mergers and acquisitions (M&A), which is a career path in corporate law or finance that focuses on the buying, selling, and consolidation of companies. Acquisitions occur when one company purchases most or all of another companys shares to gain control of that company. Purchasing more than 50% of a target firms stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company’s other shareholders.
Technically, a merger is the legal consolidation of two business entities into one, whereas an acquisition occurs when one entity takes ownership of another entitys share capital, equity interests, or assets. From a legal and financial point of view, both mergers and acquisitions generally result in the consolidation of assets and liabilities under one entity, and the distinction between the two is often blurred.
Acquisitions can be amicable, meaning both companies are on-board with and negotiate the terms of the transaction. However, the word “acquisition” is sometimes used interchangeably with “takeover,” which can be hostile. In other words, one company might wrest control of — or acquire — another company by buying a majority.
Customer acquisition, on the other hand, refers to the process of bringing in new customers or clients for a business. It is typically achieved when a customer purchases a product for the first time or subscribes to a service, and it is the central goal of a company. While customer acquisition tactics can involve all parts of a company, from sales to customer service, marketing plays a significant role in the process.
