company acquisition examples

Biggest Mergers and Acquisitions Examples List

1. Vodafone and Mannesmann (1999) - $202.8B. As of June 2022, the largest acquisitions ever made was the takeover of...
2. AOL and Time Warner (2000) - $182B. When we mentioned at the outset of this article that ‘ big doesn’t always mean...
3. Gaz de France and Suez (2007) - $182B. France loves its national champions - the...

Full Answer

What are the types of acquisition methods?

Top 4 Types of Acquisition

1. Horizontal Acquisition. This is when a company acquires another company in the same business, or industry or sector, that is, a competitor.
2. Vertical Acquisition. This is when a company acquires either a supplier of inputs or a distributor of its products or the company to which it sells its products.
3. Conglomerate Acquisition. ...
4. Congeneric Acquisition. ...

What is an example of a company merger?

What is a Merger?

• Types of Mergers. Vertical merger: A merger between companies that are along the same supply chain (e.g., a retail company in the auto parts industry merges with a company that ...
• Horizontal Mergers. ...
• Vertical Mergers. ...
• Market-Extension Mergers. ...
• Product-Extension Mergers. ...
• Conglomerate Mergers. ...
• More Resources. ...

What is an example of acquisition?

The steps taken by the acquirer in the process of acquisition are as follows:

• framing the strategy
• determining the selection criteria of the target business
• identifying potential targets
• planning for acquisition
• valuation of the target company
• negotiating on price and terms
• conducting due diligence (complete evaluation and fact-checking)
• getting into a purchase and sale contract
• financing the deal
• closing the deal

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What are the steps in the acquisition process?

What are the steps of your talent acquisition process?

• Organizational needs analysis. The organizational needs analysis is the foundation of your recruitment strategy and selection choices. …
• Approval of the job requisition. …
• Vacancy intake. …
• Determining selection criteria & methods. …
• Searching & Attraction.

What is an example of an acquisition?

The definition of an acquisition is the act of getting or receiving something, or the item that was received. An example of an acquisition is the purchase of a house.

What is an example of a successful acquisition?

Successful acquisition: Disney, Pixar and Marvel Walt Disney Co. acquired Pixar in 2006 for $7.4 billion, and has since seen tremendous success with films like WALL-E, Finding Dory and Toy Story 3 – each of which have generated billions of dollars in revenue for the company.

What is a company's acquisition?

An acquisition is when one company purchases most or all of another company's shares to gain control of that company. Purchasing more than 50% of a target firm's stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company's other shareholders.

What are the examples of mergers and acquisitions?

Some of the most famous and successful examples of M&A deals that have occurred over the last few decades include Google's acquisition of Android, Disney's acquisition of Pixar and Marvel, and the merger between Exxon and Mobile (a great example of a successful horizontal merger).

What is the biggest company acquisition?

As of March 2022, the largest ever acquisition was the 1999 takeover of Mannesmann by Vodafone Airtouch plc at $183 billion ($297.7 billion adjusted for inflation). AT&T appears in these lists the most times with five entries, for a combined transaction value of $311.4 billion.

What are 2 companies that have merged?

Top MergersVodafone and Mannesmann. This merger, which took place in 2000, was worth over $180 billion and is the largest merger and acquisition deal in history. ... America Online and Time Warner. ... Pfizer and Warner-Lambert. ... AT&T and BellSouth. ... Exxon and Mobil.

What are the three types of acquisitions?

For a high-growth company, acquisitions fundamentally boil down to one of three types: (1) team buy, (2) product buy, or (3) strategic buy. There is actually a fourth type of acquisition companies can make, often called a “synergistic” acquisition.

Why do companies do acquisitions?

Improve the target company's performance Improving the performance of the target company is one of the most common value-creating acquisition strategies. Put simply, you buy a company and radically reduce costs to improve margins and cash flows.

How does a company acquire another?

An acquisition can be paid for in cash, through a security payment such as a stock-for-stock exchange, a leveraged buyout, or a combination of several of these methods. A company can acquire another by giving cash to the existing shareholders of the target company for their shares. This is the simplest form of payment.

Was Disney Pixar a merger or acquisition?

The merger of Walt Disney and Pixar is one of the most successful corporate mergers in these years. This acquisition was of benefit for both companies. For Disney, it was of benefit because of innovative ideas in the animation studio and the technology Pixar had.

What companies have merged in 2021?

Amazon, Microsoft and Alphabet went on a buying spree in 2021 despite D.C.'s vow to take on Big Tech. Microsoft, Alphabet and Amazon all announced more acquisitions in 2021 than any other year in the past decade, according to Dealogic.

What companies have acquired other companies?

Verizon and Vodafone. Verizon Communications and Vodafone jointly brought Verizon Wireless to the market. ... Heinz and Kraft. A merger between H.J. ... Pfizer and Warner-Lambert. In 2000, Pfizer acquired Warner-Lambert for $90 billion. ... AT&T and Time Warner. ... Exxon and Mobil. ... Google and Android. ... Disney and Pixar/Marvel.

When did the UK merge with pharmaceutical companies?

The merger of the UK’s two largest pharmaceutical firms in 2000 led to what is currently the 6th largest pharmaceutical firm in the world, and the only British firm in the top 10.

What was the largest acquisition of Vodafone in 2021?

1. Vodafone and Mannesmann acquisition (1999) - $202.8B. As of January 2021 the largest acquisition was the takeover of Mannesmann by Vodafone occurred in 2000, and was worth ~ $203 billion. Vodafone, a mobile operator based in the United Kingdom, acquired Mannesmann, a German-owned industrial conglomerate company.

Who bought Mannesmann in 2021?

As of January 2021 the largest acquisition was the takeover of Mannesmann by Vodafone occurred in 2000, and was worth ~ $203 billion. Vodafone, a mobile operator based in the United Kingdom, acquired Mannesmann, a German-owned industrial conglomerate company.

Conclusion – Acquisition Example

An acquisition takes place when one of the company purchases mostly all of the shares of the other company for gaining the control of other companies. Purchasing the target company’s shares and other assets by more than 50% allows the acquirer to take the decisions of the acquired company without the approval of the company’s shareholders.

Recommended Articles

This has been a guide to Acquisition Examples. Here we have discussed the top 3 practical examples of acquisitions with a detailed explanation. You can also go through our other suggested articles to learn more –

1. Horizontal Acquisition

Horizontal acquisitions (often called ‘horizontal mergers’) involve gaining market share through consolidation.

2. Market Extension Acquisition

A market extension acquisition is a variation of a horizontal acquisition, whereby the companies in question are in different geographic locations.

3. Vertical Acquisition

If a horizontal acquisition describes a company buying a competitor operating on the same level of the production chain, a vertical acquisition describes what happens when one company acquires another at a different level of the production or value chain.

4. Conglomerate Acquisition

Our consumption patterns increasingly revolve around conglomerates, who have become experts in acquisitions.

5. Congeneric Acquisition

A congeneric acquisition (also referred to as a ‘concentric acquisition’) is a twist on the horizontal acquisition, where, rather than having the same products or service lines, the two companies involved in the deal have different product lines and service, even if they broadly serve the same market.

6. Reverse Takeover (SPAC)

Reverse takeovers or ´SPAC´ (Special Purpose Acquisition Company) deals have spiked over the past five years.

7. Acqui-hire

At a time when the biggest companies in the world are defined as much by their talent and intellectual property as their capital assets, the acquire form of acquisition is a proven way for companies to ensure that they’re winning the talent race in their industry.

What does "acquisition" mean?

Acquisition is merely an act of taking over or gaining the entire or most of the control over another entity’s shares by purchasing at least fifty percent of the targeted company’s stock and such other corporate assets and it gives the acquirer the right and liberty to take decisions of the assets ...

What is the advantage of acquisition?

The Acquisition is a time-efficient growth strategy that helps the business to acquire the core competencies and resources which are not currently available. The Company can instantaneously enter into a new market, product and overcome the barriers of entry.

Why do companies acquire other businesses?

Acquiring other businesses and entities reduces barriers to entry. The Company can overcome the market entry barrier in no time and hence reduce the market research, product development costs. They provide confidence in the Company and can boost shareholders’ morale and confidence in their Company.

What is asset purchase method?

In an asset purchase method, the buyer can select the assets it would like to buy and leave the liabilities. This method is usually used while buying a particular asset, like a single unit or a division of the Company. The buyer can buy the assets using cash or by giving its own shares.

What happens when a buyer purchases all or a substantial portion of the target company's shares?

The buyer purchases all or a substantial portion of the target Company’s shares. The buyer gets the ownership of the Company while the target Company continues to exist. The purchaser now has the majority of the seller’s voting rights.

Why are stock purchases beneficial?

Stock purchases are typically beneficial to the sellers as the long-term capital gains on the sale of stocks is taxed at a lower rate. The buyer of the Company now owns both the assets and liabilities of the target company. Thus, the buyer will inherit the legal and financial difficulties if any of the Company.

Why do companies buy out smaller companies?

A larger Company generally buys out smaller Companies for many reasons like to gain more market share, to reduce competition, to increase revenue, to bring synergy in the business. At the same time, acquisitions are good to set the Company at a growth path.

What is the biggest acquisition in history?

In global corporate history, the biggest acquisitions have been valued well over $100 billion. The most highly-valued acquisition on record occurred in 2000 when British telecom company Vodafone Group (VOD) acquired German telecom giant Mannesmann AG for a staggering $180.9 billion. 1 .

What are the three companies that DowDuPont is a part of?

In 2019, DowDuPont broke up into three distinct companies: Dow Chemical, DuPont, and Corteva. Dow Chemical is a commodity chemical company and DuPont is a specialty chemical maker. Corteva is an agricultural company, producing seeds and agricultural chemicals. 10 .

What is a takeover in 2021?

Updated May 25, 2021. A business taking over another promising business is a common occurrence in the corporate world. Such acquisitions, also called takeovers, are usually executed as part of a company’s growth strategy and are made for any number of reasons.

When did Dow Chemical merge with Dupont?

In Dec. 2015, the two chemical conglomerates —Dow Chemical and DuPont—announced their intention to merge in a deal valued at $130 billion. 8  Completed in Sept. 2017, the combined companies took on the name DowDuPont Inc. and included three divisions: agriculture, materials science, and specialty products. 9 

Do acquisitions lead to success?

While acquisitions in the corporate world are common, not all of them lead to success. Most get executed during a bull run in the economy or a particular industry sector with an expectation of success. However, failures are inevitable for incorrectly executed deals.

How does a stock acquisition work?

In stock acquisition the acquiring company acquires the stock of the target company either from open market or by approaching shareholders directly. All the assets and liabilities are transferred as it is to the parent company.

What is acquisition strategy?

This strategy involves making acquisitions early in the life cycle of a company, which has new and innovative products or business ideas, before other companies can recognize that it will grow significantly.

Why is acquisition strategy attractive?

Sometimes an acquisition strategy can be attractive because of the people it brings with it such as technological innovators, or seasoned executives or an exceptional sales team. Such strategies focus more on human talent.

Why do conglomerates acquire?

Conglomerate acquisition helps in diversification of risk as both the companies have different product line, operate in different geographies and have different customer base and business models. Acquiring company can provide its existing products to the customers of the target company and vice versa.

What is vertical acquisition?

In vertical acquisition, a company acquires another business entity in the same industry but at different points in the supply chain. Vertical acquisition can either be done by backward integration or forward integration.

What is the difference between acquisition and takeover?

What is the Difference Between Acquisition, Takeover and a Merger? 1 Acquisition describes a transaction where both the business entities co-operate. 2 Takeover describes a situation where the target business entity opposes the transaction. 3 Merger describes a transaction where both the business entities combine to form a new business entity.

What is transformational acquisition strategy?

Transformational acquisition strategy is much more than a simple combination of individual companies. If the business team executes this strategy well then the combined entity can be transformed entirely into a new company.

Why do technology companies buy other companies?

They do this because they can acquire the technology more quickly than developing it themselves, avoid royalty payments on patented technologies, and keep the technology away from competitors.

What are some examples of economies of scale?

An example is the market for television programming in the United States.

How much did Cisco buy in 2001?

From 1993 to 2001, Cisco acquired 71 companies, at an average price of approximately $350 million. Cisco’s sales increased from $650 million in 1993 to $22 billion in 2001, with nearly 40 percent of its 2001 revenue coming directly from these acquisitions.

What happens to industries as they mature?

As industries mature, they typically develop excess capacity. In chemicals, for example, companies are constantly looking for ways to get more production out of their plants, even as new competitors, such as Saudi Arabia in petrochemicals, continue to enter the industry.

Example #1 – Amazon Acquires Whole Foods Market

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Example # 3 – Microsoft and LinkedIn

Example # 4 – Disney and 21st Century Fox

Conclusion