Business, Legal & Accounting Glossary
A beachhead acquisition is when a company buys a company in a different geographic market to establish a foothold for future expansion. A beachhead acquisition is the first offensive in a hostile takeover bid on the open market, where the acquirers slowly acquire a small minority interest in the target in the hopes of going undetected.
Beachhead acquisitions are an excellent strategy for businesses looking to expand into new markets without incurring the high risk associated with a larger acquisition. A beachhead acquisition enables the acquiring company to conduct market research and determine the level of acceptance for its product or service. Additionally, it gives the acquirer time to make necessary adjustments to the business’s offering in that market or to reassess the appetite for further expansion.
Mergers and Acquisitions
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This glossary post was last updated: 26th January, 2022 | 0 Views.