What is the definition of acquisition in a business context?

In a business context, acquisition refers specifically to the process of purchasing another organization or business. This definition highlights the strategic approach companies often take to promote growth and expand their market presence. Acquisitions can provide companies with new resources, access to new markets, or enhanced capabilities by integrating the operations, products, and services of the acquired company.

Forming a partnership or creating a joint venture involves collaborating with another organization rather than outright purchasing it, which distinguishes those concepts from the definition of acquisition. Similarly, selling a part of the business pertains to divestiture, not acquisition, as it involves reducing ownership rather than increasing it through purchase. Therefore, the definition centered on purchasing aligns directly with the common understanding of what an acquisition entails in business strategy.