What is an Acquisition?
Acquisition
An Acquisition occurs when a larger corporation purchases a startup, absorbing its assets, technology, talent, and customer base.
Detailed Deep Dive
An Acquisition occurs when a larger corporation purchases a startup, absorbing its assets, technology, talent, and customer base. Acquisitions are the most common exit route for startups, providing immediate liquidity for investors and founders. Acquisitions can be structured as stock purchases, asset purchases, or mergers, with payouts in cash, stock of the acquiring company, or a combination.
Frequently Asked Questions
Q:What is an acqui-hire?
An acquisition focused primarily on securing the startup's core engineering and product talent rather than its operational business.
Q:How are acquisitions paid out?
Typically via cash, shares of the acquiring public company, or an earn-out structure based on post-acquisition milestones.
Quick Facts
- CategoryExit
- Key ApplicationCorporate exit strategies and business consolidations
Coverage Trend12 Weeks
Related Terms
Acquisition Media Coverage & Intelligence
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