1. Acquisition of Existing Businesses

Acquisition of existing businesses refers to the process where one company purchases another company. This can happen for various reasons, such as expanding market presence, gaining new technology, or increasing customer base. The acquiring company typically evaluates the target's financial health, operations, and potential for growth before the purchase. Acquisitions can be friendly, where both parties agree, or hostile, where the target company does not want to be bought. The goal is often to enhance business capabilities and increase profitability through combined resources and strengths.