What is Acquisition in Strategic Management?

Learn Acquisition definition in strategic management with explanation to study “What is Acquisition”. Study acquisition explanation with strategic management terms to review strategic management course for online MBA programs.

Acquisition Definition

  • An acquisition is a strategy through which one firm buys a controlling, or 100 percent, interest in another firm with the intent of making the acquired firm a subsidiary business within its portfolio.

    Strategic Management by Michael A. Hitt, R. Duane Ireland, et al.



Acquisition Explanation

Acquisition is characterized as a corporate exchange where one organization buys a bit or the majority of another organization's offers or resources. Acquisitions are ordinarily made so as to take control and expand on the objective organization's shortcomings or qualities and catch cooperative energies. There are a few sorts of business blends: acquisitions (the two organizations endure), mergers (one organization endures), and amalgamations (neither one of the companies endures). A securing will build the piece of the overall industry of your organization rapidly and diminish the challenge's fortress. Despite the fact that challenge can be testing, development through securing can be useful in decreasing the limit of contenders and making things even. The procedure aides accomplishes showcase cooperative energies.

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