Question

(In case Jim cannot merge with someone) Jim soon realizes that none of his competitors want to merge with him but still facing stiff competition, so he asks you to assist him in acquiring one of the competitors to give him a bigger advantage in the market. a. Explain to Jim what is an acquisition and then explain to him the different ways he can acquire one of his competitor’s company. b. Explain to Jim what the significance of him acquiring a competitor’s company would be in relations to control of the company, decision making, directors, etc…

Answer 1

Answer:

The act of gaining or acquiring possessions : the acquisation of real estate. Something acquired ; addition ; public excitment about the museum's recent acquisations. the purchase of one business enterprise by another; the acquisation of a rival corporaations.

The defination of acquisation is the act of getting or receiving somethng, or the item that was received. An exaple of an acquisation is the purchase of a house youdictionary and usage.

An acquisation involves buying companies and changing it to fit the way you do business> the goal is to create a new company made of the best parts of your business and the proven part of another. A startup would buy another busiess for various reasons.

The basic mathod of acquisation are purchase, gift , exchange and filed collection. The firs three are of these are legal transactions. Types are as follows

• Horizontal Acquisation
• Vertical Acquisation
• Congeneric Acquisation
• Conglomerate Acquisation

Advatages of Acquisations:

• Reduced entry barriers
• Market Power
• New Competence and resouces
• Aceess to experts
• Access to capital
• Fresh Idea and prespective