Discovering the examples of acquisitions that was successful

Discovering the examples of acquisitions that was successful

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

Among the countless types of acquisition strategies, there are two that individuals commonly tend to confuse with each other, perhaps because of the similar-sounding names. These are called 'conglomerate' and 'congeneric' acquisitions, which are two very distinct strategies. To put it simply, a conglomerate acquisition is when the acquirer and the target firm are in entirely unrelated sectors or engaged in different activities. There have been lots of successful acquisition examples in business that have included two starkly different firms without any overlapping operations. Usually, the objective of this approach is diversification. For example, in a situation where one service or product is struggling in the current market, businesses that also possess a diverse variety of other products and services have a tendency to be a lot more secure. On the other hand, a congeneric acquisition is when the acquiring firm and the acquired company are part of a similar industry and sell to the same kind of client but have relatively different service or products. Among the major reasons why businesses might decide to do this kind of acquisition is to simply expand its product lines, as business individuals like Marc Rowan would likely validate.

Many individuals think that the acquisition process steps are constantly the same, whatever the firm is. However, this is a common misunderstanding since there are actually over 3 types of acquisitions in business, all of which include their very own operations and approaches. As business individuals like Arvid Trolle would likely verify, among the most frequently-seen acquisition techniques is referred to as a vertical acquisition. Basically, this acquisition is the polar opposite of a horizontal acquisition; it is where one business acquires another business that is in a totally different position on the supply chain. For instance, the acquirer business may be higher up on the supply chain but decide to acquire a company that is involved in a key part of their business operations. In general, the beauty of vertical acquisitions is that they can bring in new income streams for the businesses, along with decrease prices of manufacturing and streamline operations.

Prior to diving into the ins and outs of acquisition strategies, the very first thing to do is have a firm understanding on what an acquisition actually is. Not to be mixed-up with a merger, an acquisition is when one firm purchases either the majority, or all of another business's shares to gain control of that business. Generally-speaking, there are around 3 types of acquisitions that are most common in the business realm, as business people like Robert F. Smith would likely recognize. Among the most prevalent types of acquisition strategies in business is referred to as a horizontal acquisition. So, what does this imply? Essentially, a horizontal acquisition involves one company acquiring a different firm that is in the very same market and is performing at a similar level. The two companies are primarily part of the exact same market and are on an equal playing field, whether that's in production, financing and business, or agriculture etc. Often, they could even be considered 'rivals' with one another. Overall, the main benefit of a horizontal acquisition is the increased capacity of increasing a firm's client base and market share, in addition to opening-up the opportunity to help a firm grow its reach into new markets.