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Explain the types of acquisition. |
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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 bigger company just buys off all its share. |
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