An acquisition is a business strategy that involves the procurement of one business entity by another. It can be done by either purchasing a significant portion of the target company’s stocks or buying off its assets. Acquisition as a term has many synonyms such as buyout, procurement, purchase and possession, which are often used interchangeably. It is adopted as a strategy to acquire a company for rapid expansion and development. A company purchases an existing business firm to expand its empire. It helps enter into a new market/industry, utilize the acquired firm’s operational capabilities and tap into its resources.
An acquisition is a corporate strategy to gain access to new potential assets, resources, technology to attain fast business growth and expansion. It helps the firm diversify its business operations and product line by acquiring a company belonging to a different industry while diminishing the entry barriers of a new market. A startup would buy another business for various reasons. These reasons include access to new technology and access to new markets. Buying a company can mean being able to make new products and having access to new resources or fresh management talent. Moreover, when a company purchases another business entity in the same industry its market share increases boosting the confidence in consumers and shareholders.
To ensure the success of such a process we study how to maximize the benefits gained from an acquisition, while reducing the risk of failure. We do so by discussing the strategies that are most successful for buyers, the steps and pitfalls in the acquisition process, how to gain government approval of an acquisition, and how to conduct a sufficiently detailed due diligence investigation. We address those legal structures that are most beneficial from a tax perspective, how to develop a sensible purchase price, and how to engage in a seamless operational integration.
We have organized work criteria which includes researching target companies, creating the initial contact whether through a discrete contact, a joint venture or a third party, creating the non-disclosure agreement, writing a letter of intent, sending a list of due diligence and having final negotiations.