Acquisition Analysis

Running Head: ACQUISITION ANALYSIS 1
ACQUISITION ANALYSIS

Running Head: ACQUISITION ANALYSIS
Contents
Consolidation and Acquisition............................................................................................. 3
Reasons for the Acquisition........................................................................................ 3
Conclusion.................................................................................................................. 5
References................................................................................................................. 7

Running Head: ACQUISITION ANALYSIS
Consolidation and Acquisition
Acquisition and takeover refers to the term in the section of the mergers, acquisition and
restructuring in finance. Acquisition refers to the purchase of the controlling interest by one
company in the share capital of an existing company (Hoyle, Schaefer and Doupnik, 2015).
This may be done via an agreement with the majority of the interest, purchase of the shares by
private agreement, purchase of shares in the open market and acquisition of share capital in the
open market. These are some kind of the ways by which the merger can happen.
An acquisition is one where one company purchases most of the shares of the company in order
to gain the control of the company. As in case of the Ethan and Darren limited, Ethan limited has
acquired the Darren Limited for the acquisition of $110000 (Jones, 2018).
Reasons for the Acquisition
There are several reasons for which the acquisition takes place and those have been determined
below.
 In order to enter the foreign market, the company has the opportunities via acquiring the
foreign based company locally. This way the growth of the company will be intact and
fast (Thaker, Carvalho and Koedinger, 2019).
 As a reason of the growth strategy, a company can acquire the company to restart the
business in the new manner so that the depletion of the assets that have occurred perhaps
would be curtailed.
 To gain the new technology the company opts for the expansion to become cost efficient
who has already implemented the new technology.