Define: Business Combination

UK Accounting Glossary

Definition: Business Combination

Quick Summary of Business Combination

A transaction in which one company acquires control of another.

What is the dictionary definition of Business Combination?

Dictionary Definition

business combination is a transaction in which the acquirer obtains control of another business (the acquiree).


Full Definition of Business Combination


Business Combination FAQ's

How do you identify a business combination under the acquisition method?

The acquisition method is based on the 4-step method in the business combination process below:

  1. Identify the Acquirer
  2. Determine the Acquisition date
  3. Recognise and measure identifiable assets acquired, liabilities assumed, and non-controlling interest in the acquiree.
  4. Recognise and measure goodwill, or recognise a gain from a bargain purchase.

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):
Business Combination. Payroll & Accounting Heaven Ltd. November 22, 2019
Chicago Manual of Style (CMS):
Business Combination. Payroll & Accounting Heaven Ltd. (accessed: November 22, 2019).
American Psychological Association (APA):
Business Combination. Retrieved November 22, 2019, from website:

Definition Sources

Definitions for Business Combination are sourced/syndicated from:

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

This glossary post was last updated: 23rd December 2018.