Acquiring Company

The term “acquiring company” denotes a company which acquires – or attempts to acquire – another company (the target company) through an acquisition.

An acquiring company may attempt to purchase a target company in order to expand its market share, gain access to technology or knowledge, or diversify its operations. It may also purchase a target company with the aim of pilfering or absorbing its assets or even bankrupting it.

In a hostile takeover, an acquiring company acquires a target company without the consent of its management. This is done by gaining a controlling influence over the target company through the purchase of its shares from shareholders.

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