What is “Acquisition” meaning?

Acquisition is a business term that describes the process where one company purchases another—either by buying its shares, assets, or both. It’s commonly used in corporate strategy and investment circles and helps businesses understand how to grow, consolidate, or reposition themselves in the market.

Example

“After months of negotiation, the tech giant completed the acquisition to strengthen its position in the AI sector.”

How is “Acquisition” used in business?

In business, acquisition is typically used to describe how companies expand their capabilities, customer base, or geographical reach through buyouts. It often plays a key role in mergers and acquisitions (M&A), strategic growth planning, and market entry tactics. Understanding this concept can help executives and entrepreneurs make smart decisions about partnerships and scaling.

Pro Tip

Always conduct thorough due diligence before an acquisition—misjudging valuation, liabilities, or cultural fit can turn a strategic win into a costly mistake.

Related Terms

Merger, Due Diligence, Private Equity, Valuation