+3 votes
in Class 12 by kratos

Explain the types of acquisition.

1 Answer

+5 votes
by kratos
 
Best answer

There are four types of acquisitions:

1. Friendly acquisition: Here, both the companies approve of the acquisition under friendly terms. There is no use of force or pressure and every thing gets over cordially.

2. Reverse acquisition: Here, a private company takes over a public company.

3. Rack flip acquisition: Here, the purchasing company becomes a subsidiary of the purchased company.

4. Hostile acquisition: Here, the entire process is based on force. The smaller company is forced to say yes to the acquisition or the ** company just buys *** all its share.

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