Definition
Acquisition refers to the acquiring by one firm of another firm’s technology (process, facility, or material), product rights (trademarks), or entire businesses in order to increase its total sales. The acquisition may be related to the firm’s current business (e.g., the acquisition of a competitor, a supplier, or a buyer) or may be unrelated (e.g., the acquisition of an entirely different business).
Acquisition is a method of expanding one’s product offering by means other than internal development. Any combination that forms one company from two or more previously existing companies is known as a merger. [1]
A merger is the joining together of two or more independent business organizations into a single entity.
Acquisition value is the buyers’ perceptions of the relative worth of a product or service to them. It is formally defined as the subjectively weighted difference between the most a buyer would be willing to pay for the item less the actual price of the item. [1]
See Also
References
- American Marketing Association, AMA Dictionary.
- SEMPO, SEM Glossary, April 2015.