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Acquisitions

An acquisition is a corporate action in which one company, the acquirer, purchases a majority of another company's shares to gain control. Acquisitions may be friendly or hostile, and they differ from mergers in that control is transferred through a purchase rather than a mutual combination of equals.

Acquisitions may be structured as stock purchases or asset purchases. Payment can be all cash, stock, or

Common motives include rapid growth, increased market share, diversification, vertical integration, access to technology or brands,

Post-merger integration aims to align operations, systems, and governance while retaining critical talent. Successful integration requires

Notable acquisitions illustrate the practice: Microsoft’s 2016 purchase of LinkedIn, Amazon’s 2017 acquisition of Whole Foods,

a
combination,
often
with
earn-outs.
The
process
typically
includes
a
letter
of
intent,
due
diligence,
negotiation
of
a
definitive
agreement,
regulatory
approvals,
and
closing.
and
the
realization
of
cost
or
revenue
synergies.
Risks
include
overpayment,
integration
challenges,
culture
clashes,
loss
of
key
personnel,
and
regulatory
obstacles.
clear
leadership,
detailed
planning,
cultural
management,
and
ongoing
monitoring
of
synergies
and
performance.
and
Facebook’s
2012
acquisition
of
Instagram.