Glossary · from the DESK dictionary
Acquisition
One company buying another (or a controlling stake in it).
In plain words
Company A buys company B — either entirely or a controlling stake.
In more detail
Acquisitions can be friendly (with the target's management on board) or hostile, and are financed with cash, the acquirer's own stock, or a combination of both.
Example
A large tech company acquires a smaller startup to integrate its technology and team.
What it means for traders
A central event in corporate finance and M&A, often with substantial price impact on both companies involved.
Common pitfalls
Many acquisitions fail to actually realize the hoped-for strategic value.
Related terms
Accretive vs. Dilutive · Acquisition Accounting · Acquisition Cost · Acquisition Premium · Amalgamation · Antitrust · Arm's Length Transaction · Carve-Out · Due Diligence · Due Diligence Process · Earnout · Leveraged Buyout (LBO)
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.