What is Acquisition?

Definition

An acquisition is the process by which one company purchases another business by acquiring either its shares or its assets. Businesses pursue acquisitions to accelerate growth, expand into new markets, strengthen their competitive position, acquire new technologies or capabilities, or diversify their operations.

Acquisitions may involve privately owned or publicly listed companies and can be structured in different ways depending on the objectives of the buyer and seller. The process typically includes valuation, due diligence, negotiation of transaction documents and completion.

Successful acquisitions require careful planning to ensure that strategic objectives are achieved and that operational integration creates long-term value for all stakeholders.

Why it matters

Acquisitions are one of the most effective ways for businesses to accelerate growth and create value. They remain a core component of corporate strategy and global M&A activity.

In practice

In the European mid-market, acquisitions are frequently used to enter new geographical markets, strengthen sector expertise or expand service offerings. Buyers increasingly focus on strategic fit and value creation potential rather than pursuing scale alone.