Discovering the examples of acquisitions that was successful

Discovering the examples of acquisitions that was successful

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When 2 companies go through an acquisition, it is very likely that they will do one of the following techniques

Before diving into the ins and outs of acquisition strategies, the first thing to do is have a solid understanding on what an acquisition actually is. Not to be confused with a merger, an acquisition is when one firm purchases either the majority, or all of another firm's shares to gain control of that business. Generally-speaking, there are around 3 types of acquisitions that are most popular in the business industry, as business people like Robert F. Smith would likely know. Among the most prevalent types of acquisition strategies in business is referred to as a horizontal acquisition. So, what does this mean? Basically, a horizontal acquisition involves one company acquiring another firm that is in the exact same market and is performing at a similar level. Both firms are basically part of the very same market and are on an equal playing field, whether that's in production, finance and business, or farming etc. Commonly, they may even be considered 'rivals' with each other. In general, the major advantage of a horizontal acquisition is the increased potential of boosting a company's consumer base and market share, in addition to opening-up the opportunity to help a firm grow its reach into new markets.

Among the numerous types of acquisition strategies, there are 2 that people tend to confuse with each other, maybe due to the similar-sounding names. These are called 'conglomerate' and 'congeneric' acquisitions, which are two rather separate strategies. To put it simply, a conglomerate acquisition is when the acquirer and the target firm are in completely unconnected markets or engaged in different activities. There have actually been numerous successful acquisition examples in business that have included two starkly different businesses with no overlapping operations. Normally, the aim of this technique is diversification. For example, in a circumstance where one product or service is struggling in the current market, firms that also own a diverse range of additional services and products often tend to be more steady. On the other hand, a congeneric acquisition is when the acquiring company and the acquired business belong to a similar market and sell to the same sort of customer but have relatively different products or services. One of the major reasons why businesses might choose to do this sort of acquisition is to simply expand its line of product, as business individuals like Marc Rowan would likely validate.

Many people presume that the acquisition process steps are constantly the same, no matter what the business is. Nonetheless, this is a typical mistaken belief because there are actually over 3 types of acquisitions in business, all of which include their very own operations and strategies. As business people like Arvid Trolle would likely verify, among the most frequently-seen acquisition strategies is known as a vertical acquisition. Essentially, this acquisition is the polar opposite of a horizontal acquisition; it is where one firm acquires another firm that is in a completely different position on the supply chain. For instance, the acquirer firm might be higher up on the supply chain but decide to acquire a business that is involved in a vital part of their business operations. In general, the beauty of vertical acquisitions is that they can generate brand-new revenue streams for the businesses, as well as lower expenses of production and streamline operations.