Acquirer

  

Categories: Banking, Incorporation

The buyer. See Acquiree.

Related or Semi-related Video

Finance: What's the difference between m...23 Views

00:00

Finance allah shmoop what's the difference between mergers and acquisitions

00:08

all right people listen up Merger that's what's about to

00:11

happen here it's a merger acquisition that's what's about to

00:16

happen here Corporate america is kind of same thing when

00:20

two companies merge while they generally you know attracted to

00:24

each other hopefully respect each other they share stock or

00:28

combined the stocks of each side and you know combine

00:32

efforts and then and then cuddle afterwards if they're successful

00:36

at the merger than the combination of two roughly equals

00:39

yields more than the one plus one combo that made

00:43

them so two companies get together on generally equal ish

00:46

footing In that case acquisitions are a combining more like

00:51

that eating thing on much different footing The large company

00:55

eats or buys the target either using its more highly

00:59

valued stock currency or it's taft to do so Well

01:02

why would a company acquire another Well the target might

01:05

have one hundred employees ninety of whom can be fired

01:08

with massive expense savings after the acquisition For the acquirer

01:12

such that economically the acquisition won't just makes a whole

01:15

lot of financial sense acquisitions happen for market power reasons

01:19

As well like imagine the negotiating leverage that amazon would

01:23

have if it bought the next five biggest online retailers

01:27

Or maybe it'll just kill them Probably not legal for

01:29

them to buy him anyway given the monopoly like dominance

01:32

of amazon these days But wow that would be a

01:34

powerful set of acquisitions And that would be a good

01:37

reason for ems on to acquire a whole bunch Things

01:39

and bezos would grow even more powerful maybe too powerful

Up Next

Finance: What is The Difference Between a Horizontal and a Vertical Merger?
6 Views

What is the difference between a Horizontal and a Vertical Merger? Horizontal mergers happen when two companies within the same industry decide to...

Finance: What are accretive v dilutive v neutral acquisitions?
18 Views

Accretive: the acquisition has a net positive impact on earnings per share. Dilutive: earnings per share are negatively impacted as a result of the...

Find other enlightening terms in Shmoop Finance Genius Bar(f)