Looking into the examples of acquisitions that prospered

Looking into the examples of acquisitions that prospered

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Below is a brief overview to understanding the various acquisition solutions and techniques that business leaders can choose from

Among the several types of acquisition strategies, there are two that individuals often tend to confuse with each other, possibly as a result of the similar-sounding names. These are referred to as 'conglomerate' and 'congeneric' acquisitions, which are two rather distinct strategies. To put it simply, a conglomerate acquisition is when the acquirer and the target firm are in totally unrelated sectors or engaged in separate ventures. There have been many successful acquisition examples in business that have included 2 starkly different firms with no overlapping operations. Normally, the aim of this approach is diversification. For instance, in a scenario where one service or product is struggling in the current market, companies that also have a diverse range of additional products and services often tend to be much more secure. On the other hand, a congeneric acquisition is when the acquiring company and the acquired business belong to a similar sector and sell to the same type of client but have slightly different services or products. Among the main reasons why firms could choose to do this sort of acquisition is to simply expand its product lines, as business individuals like Marc Rowan would likely confirm.

Many people assume that the acquisition process steps are constantly the same, whatever the company is. Nevertheless, this is a common mistaken belief due to the fact that there are actually over 3 types of acquisitions in business, all of which come with their own operations and approaches. As business people like Arvid Trolle would likely confirm, one of the most frequently-seen acquisition methods is known as a vertical acquisition. Essentially, this acquisition is the polar opposite of a horizontal acquisition; it is where one business acquires another business that is in an entirely different position on the supply chain. For example, the acquirer business might be higher on the supply chain but opt to acquire a company that is involved in an essential part of their business procedures. Generally, the appeal of vertical acquisitions is that they can generate new income streams for the businesses, as well as lower expenses of manufacturing and streamline operations.

Prior to diving right into the ins and outs of acquisition strategies, the 1st thing to do is have a solid understanding on what an acquisition actually is. Not to be confused with a merger, an acquisition is when one company purchases either the majority, or all of another company's shares to gain control of that company. Generally-speaking, there are about 3 types of acquisitions that are most typical in the business industry, as business individuals like Robert F. Smith would likely recognize. Among the most standard types of acquisition strategies in business is called a horizontal acquisition. So, what does this mean? Essentially, a horizontal acquisition involves one company acquiring another company that is in the same market and is performing at a similar level. Both businesses are primarily part of the very same sector and are on a level playing field, whether that's in production, financing and business, or farming etc. Commonly, they may even be considered 'rivals' with one another. In general, the main advantage of a horizontal acquisition is the increased potential of increasing a firm's consumer base and market share, along with opening-up the possibility to help a business grow its reach into new markets.