Business acquisition is the process of acquiring a company to build on strengths or weaknesses of the acquiring company. The process begins with defining the type of business that would make a good acquisition. Generally businesses within the same segment or a highly complementary market segment are targeted. Once defined the target business is approached and if interest is shown due diligence is performed to ascertain the financial and other conditions Acquiring Company Meaning the business.

When the financial terms are agreed upon, and the contract is signed the merger portion of the acquisition begins. Overlapping processes, personnel and products are evaluated and the better-performing pieces are retained. A single acquisition refers to one company buying the assets and operations of another company and absorbing what is needed while simply discarding duplicated Acquiring Company Meaning unnecessary pieces of the acquired business.

The acquiring business may wish to retain the customer list and a product line, while moving manufacturing and other production related duties to an existing line. In this case the excess is often sold off to recapture some of the acquisition cost. Businesses that use affiliates to sell and market their products may find themselves in the position of losing control of the marketing portion.

This presents a danger as the entire business cycle is dependent on the sales cyclewhich is now external to the business. In this scenario the acquiring business may be Acquiring Company Meaning into paying a premium to the affiliate, to regain control of Acquiring Company Meaning process without upsetting current customers and cash flow.

In rare instances the affiliate will gain so much influence that it can purchase the parent company. There are many risks related to business acquisition and a number of mergers or acquisition fail ending up inducing higher operating costs. From Wikipedia, the free encyclopedia.

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Acquiring Company financial definition of Acquiring Company

338 Transaction: The acquiring company purchases the stock of the target from the target's shareholders for cash, stock securities, or other consideration and elects pursuant to IRS Code Section 338 by the 15th day of the ninth month after the month of acquisition to treat the transaction as if the target company sold its assets for a price equal to their fair market value.…

Acquiring - definition of acquiring by The Free Dictionary

Define acquiring. acquiring synonyms, acquiring pronunciation, acquiring translation, English dictionary definition of acquiring. tr.v. ac·quired , ac·quir·ing , ac·quires 1. ... To allay taxpayer concerns, the IRS provided an election in the final regulations to permit the acquiring company to forgo the use of the acquired company's losses ...…

Acquired Company financial definition of Acquired Company

A company that is the object of a takeover attempt. That is, another company is buying the acquiree's shares with the intent of obtaining a majority stake.This may occur with or without the authorization of the acquiree's board of directors.An acquiring company identifies potential acquirees based on a variety of factors, including share price and growth potential; in the event of a hostile ...…