What characterizes a takeover or acquisition?

A takeover or acquisition is characterized by one firm buying another firm. This process typically involves one company purchasing a controlling interest in another, effectively taking over its operations and decision-making authority. This transaction can result in various strategic advantages, such as expanding market presence, accessing new customer segments, or acquiring valuable assets or technologies.

The key aspect of a takeover is the transfer of ownership, which differentiates it from other forms of business arrangements such as partnerships or joint ventures. In those instances, firms collaborate while maintaining their independence and sharing resources without a transfer of ownership. By contrast, in a takeover, the acquirer assumes control over the acquired firm, which may involve reorganization, integration of operations, and alignment of business strategies to achieve the acquirer's objectives.

This distinction makes the concept of a takeover unique and highlights the importance of ownership dynamics in business transactions.