Acquisition - Term Overview

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Acquisition is the act of obtaining a product or service through a transaction. This requires the claimant to place a purchase order and the payment to be accepted by the bidder.

It's worth mentioning that some academies consider other meanings for the word acquisition. It can refer, for example, to the good or service acquired. Likewise, a company can use this term to refer to the hiring of a professional with highly valued qualities.

Steps of an acquisition

Behind an acquisition, several steps are taken. First, the plaintiff must plan his purchase, identifying the characteristics and quantity of the product he needs.

After determining those standards, go through a screening process. In this analysis, the acquisition price, quality, reliability and trajectory of the future supplier must be taken into account, among others.

The buyer will then choose a bidder and enter into a negotiation process. Then, if that's the case, you may need to seek financing from a third party.

It should be noted that the operation doesn't end with the signing of a contract. After that, an efficient management and control of the supplies or services provided by the supplier must be executed.

Likewise, the waste generated in the production process must be properly managed.

Acquisition of a company

The mergers and acquisitions of companies are a form of external growth. The acquisition consists of the purchase that a company makes of another by taking ownership of its shares. However, both companies don't merge their assets.

The operation described doesn't always ensure total control over the acquired firm. This depends on the percentage of share capital obtained by the buyer. In addition, another relevant factor is the distribution of the rest of the shares, that is, if they are concentrated in few or many investors.

It should be noted that there are generally three ways to acquire a company: A conventional purchase-sale contract, financing a significant part of the acquisition price with debt, or through a public offering of shares ( OPA ).

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