An acquisition occurs when one company takes ownership of another company by purchase. There are four main types of acquisitions: friendly acquisitions involve mutual agreement between companies; reverse acquisitions involve a private company purchasing a public one; backflip acquisitions result in the purchasing company becoming a subsidiary; and hostile acquisitions are done against the will of the target company. Acquisitions allow companies to increase market share and diversification but can also overleverage acquiring companies with debt if not properly valued or integrated.

1. Presented By-
Priyansh Kesarwani
MBA (Marketing & IT )

2. AQUISITION

3. WHAT IS ACQUISITION?
When one company takes over
another and clearly established
itself as a new owner , the
purchase is called an acquisition

4. TYPES OF ACQUISITION?
1. Friendly acquisition
2. Reverse acquisition
3. Back flip acquisition
4. Hostile acquisition

5. 1.FRIENDLY ACQUISITION
Both the companies approve the acquisition
under friendly terms.
EXAMPLE:
Biotechnology
1.75 billion euro's($2.37billion)

6. 2.REVERSE ACQUISITION
A private company takes over a public
company.
EXAMPLE:

7. 3.BACKFLIP ACQUISITION
The purchasing company becomes a
subsidiary of the purchased company.
EXAMPLE:

8. 4.HOSTILE ACQUISITION
Here, the entire process is done by force.
EXAMPLE:
$10.3billion

9. ACQUISITION:WHY& WHYNOT
WHY IS IT
IMPORTANT
• Increase market share.
• Increased diversification.
• excessive competition
and cost maximization
PROBLEMWITHACQUISITION
• Inadequate valuation of
target.
• Inability to achieve
synergy.
• Finance by taking huge
debt

10. DIFFERENCEBETWEEN M&A

11. DIFFERENCESBETWEENM&A
BASIS MERGERS ACQUISITION
MEANING Fusion of two or more
companies voluntarily
form anew company
When one entity
purchases the business
of other entity
Formation of new
firm
yes no
purpose Todecrease competition
& increase operational
efficiency
Forinstantaneous
growth
Sizeof business
Sizeof merging
companies is more or
lesssame
Sizeof the acquiringcompany
is bigger than acquired
company
No. of companies
involved
3 2