Acquisition is a corporate strategy where companies are divided and sold to other organizations or where smaller firms are acquired by larger ones. The acquisition process involves reviewing assets, liabilities, financials, and operations to evaluate profit potential and make appropriate negotiation decisions. Acquisitions can refer to purchases of smaller companies by larger ones or reverse takeovers where a smaller firm gains management control of a larger company. A reverse merger allows a private company to publicly list by purchasing a public shell company. Acquisitions allow businesses to increase efficiency and focus through consolidation or expansion into new areas.