Acquisition Law and Legal Definition

Acquisition, in the corporate context, refers to when one firm buys majority interest in another, but both retain their identities. Acquisitions require significant time and financial expense, and involve many uncertainties. Less than half of the initiated transactions to buy a particular business actually complete. The steps include:

  1. determining investment objectives
  2. searching for the right opportunity
  3. valuing the business
  4. a detail investigation of the business prior to investment
  5. negotiating and managing the transaction and
  6. closing the deal