Business, Legal & Accounting Glossary

Definition: Acquisition


Quick Summary of Acquisition

An acquisition takes place where one company – the acquirer – acquires control of another – the acquiree – usually through purchase of shares.

What is the dictionary definition of Acquisition?

Dictionary Definition

A term used to describe the takeover of a company by another which might be by agreement or hostile.

  1. The act or process of acquiring.
  2. The thing acquired or gained; a gain.
  3. computing The process of sampling signals that measure real-world physical conditions and converting these signals into digital numeric values that can be manipulated by a computer.

Full Definition of Acquisition

Acquiring control of a corporation, called a target, by stock purchase or exchange, either hostile or friendly. also called takeover.

In a broad sense, an acquisition takes place when one corporation takes over the controlling interest of another. An acquisition invariably results in a merger of two companies. When an acquisition occurs, the company that is being acquired is dubbed a target company. Although the term acquisition usually refers to a larger company consuming a smaller one, the outcome of an acquisition is always a formation of a single business entity from assets and liabilities of two separate units. An acquisition can come in the form of a friendly merger between two corporations. It may also come as a hostile takeover, in which the target company attempts to block the acquisition. By and large, acquisitions are sought to consolidate market influence within given industries, as well as to advance profit opportunities. In effect, a successful acquisition is determined by whether or not it has augmented the value of the acquiring company.

Examples of Acquisition in a sentence

The closing of the acquisition is subject to customary closing conditions, including approval of the acquisition agreement by holders of a majority of the companies stock.

We should be able to raise more capital for the acquisition so long as the target company remains profitable.

Synonyms For Acquisition


Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Acquisition. Payroll & Accounting Heaven Ltd.
August 08, 2022
Chicago Manual of Style (CMS):
Acquisition. Payroll & Accounting Heaven Ltd. (accessed: August 08, 2022).
American Psychological Association (APA):
Acquisition. Retrieved August 08, 2022
, from website:

Definition Sources

Definitions for Acquisition are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 21st November, 2021 | 0 Views.