Rosapeak Advisors

Types of acquisitions

Here are some types of Acquisitions:
Consolidating acquisition:

A consolidating acquisition occurs when an acquiring company buys another company to decrease competition.

Value-creating acquisition: 

This acquisition is where an entity buys a business to make a profit. Rather than absorb the target company, the acquirer enhances the firm’s performance and sells it to the highest bidder.

Accelerating acquisition: 

This involves a bigger company buying a smaller business to increase the market access of the target company’s products or services.

Speculating acquisition:

This is when a larger entity buys a smaller business to gain from the potential growth of the acquired company’s new products or services.

Resource acquiring acquisitions: 

This involves an acquisition in which a company buys another company to have access to the acquired firm’s resources, such as intellectual property, skills, personnel or market access. The rationale behind this transaction is that the acquirer saves cost and time if they buy an existing company with the structure it needs rather than creating a new one.

Acquisition of assets:

It’s common for a company to directly acquire the assets of another company during bankruptcy proceedings.

Management acquisition: 

In this type of acquisition, a company’s executives purchase a controlling stake in another organization to make it private.

Tender offer:

A tender offer involves the purchase of a company’s outstanding stock at a specified price instead of the market price.