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Why Companies Make Acquisitions

Posted On: 12-07-2007

It has been brought to my attention that in my last post titled “Top 5” reasons for buying a business we looked at the advantages of buying a business strictly from an individual’s perspective.  So, today, let’s take a look at business acquisitions from the perspective of an acquiring company.

 

Unlike individual owners, existing companies acquire for reasons ranging from infrastructure needs, to growth expectations, to poison pill acquisitions.  Since every company is different and the reasons for acquisition vary, it is nearly impossible to say why an acquisition is attractive to a corporate buyer (unless you’re an insider privy to this information).  So, rather than rank this list, let’s just explore some of the reasons.  I’ll leave the rankings to you.  

These are just some of the reasons, there are many others.  Feel free to share your experiences….  

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