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What Is An Acquisition?: Organizational Chart'

An acquisition occurs when one company gains controlling interest in another company by purchasing a majority of its outstanding shares, allowing the acquiring company to take ownership. An acquisition can involve paying with cash, debt, stock in the acquiring company, or a combination of these. Those who gain controlling interest through an acquisition immediately gain control over the acquired company and have the power to restructure its organization.

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37 views1 page

What Is An Acquisition?: Organizational Chart'

An acquisition occurs when one company gains controlling interest in another company by purchasing a majority of its outstanding shares, allowing the acquiring company to take ownership. An acquisition can involve paying with cash, debt, stock in the acquiring company, or a combination of these. Those who gain controlling interest through an acquisition immediately gain control over the acquired company and have the power to restructure its organization.

Uploaded by

ChahatBhattiAli
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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What is an Acquisition?

In a laymans language an acquisition is one company acquiring a controlling


interest in another company. An acquisition (of un-equals, one large buying one
small) can involve a cash and debt combination, or just cash, or a combination of
cash and stock of the purchasing entity, or just stock. An acquisition occurs when an
organization acquires sufficient shares to gain control/ownership of another
organization. Acquisitions can also happen through a hostile takeover by purchasing
the majority of outstanding shares of a company in the open market against the
wishes of the target's board. In an acquisition there are clear winners or losers;
power is not negotiable, but is immediately surrendered to the new parent on
completion of the deal. `Those who hold the title also hold the pen to draw the
organizational chart'.

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