An acquisition is made when a valued asset is purchased, given to, or acquired by an organization or company. An acquisition can be made of a company or a high-value object, among other assets.
An acquisition is made when a company or investor purchases shares in another company for a majority or total level of ownership. Owning at least 50% of a company's stock makes that shareholder the main controller of the business. Companies often acquire other companies when they are looking to expand their offerings, remove industry competition, or increase their valuations and profits. Acquisitions should not be confused with mergers, which occur when two companies join forces to create a new legal entity. In an acquisition, the purchaser of the company is the new controller. Acquired companies often still stay active under the ownership of the new one while retaining their internal management structures. Acquisitions can be made using the payment methods of cash, stock, debt assumption, or a combination of methods.