Why Would A Company Want To Acquire Another Company?

1.	Why Would A Company Want To Acquire Another Company?
Answer» Several possible reasons: The buyer wants to gain market share by BUYING a COMPETITOR. The buyer needs to grow more quickly and sees an ACQUISITION as a way to do that. The buyer believes the seller is undervalued. The buyer wants to acquire the seller’s customers so it can up-sell and cross-sell to them. The buyer thinks the seller has a critical technology, intellectual property or some other “secret sauce” it can USE to significantly enhance its business. The buyer believes it can achieve significant synergies and therefore make the deal ACCRETIVE for its shareholders. Several possible reasons:

Answer»

Several possible reasons:

The buyer wants to gain market share by BUYING a COMPETITOR.
The buyer needs to grow more quickly and sees an ACQUISITION as a way to do that.
The buyer believes the seller is undervalued.
The buyer wants to acquire the seller’s customers so it can up-sell and cross-sell to
them.
The buyer thinks the seller has a critical technology, intellectual property or some
other “secret sauce” it can USE to significantly enhance its business.
The buyer believes it can achieve significant synergies and therefore make the deal
ACCRETIVE for its shareholders.

Several possible reasons:

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