Legal Definitions - acquisition

In legal terms, an acquisition refers to:

• The act of gaining possession or control over something, such as property, assets, or a business.

• The item or entity that has been obtained or acquired.

Here are some examples to illustrate the concept of acquisition:

• Imagine a major pharmaceutical company, PharmaCorp, decides to expand its research capabilities by purchasing a smaller biotechnology startup, BioInnovate Inc.. This transaction is an acquisition because PharmaCorp gains ownership and control over BioInnovate Inc.'s patents, research facilities, and scientific team. The startup itself, once purchased, becomes an acquisition for PharmaCorp.

• Consider a city government that needs land to build a new public library. After negotiations, the city purchases a vacant lot from a private developer. This purchase is an acquisition of real estate by the city. The vacant lot, now owned by the city, is an acquisition that will serve a public purpose.

• A private equity firm, Growth Capital Partners, identifies a struggling but promising manufacturing company, Industrial Solutions Co., as a potential investment. Growth Capital Partners then buys a controlling stake in Industrial Solutions Co., taking over its operations and management with the goal of improving its profitability. This strategic purchase of a controlling interest is an acquisition, giving Growth Capital Partners significant influence and ownership over the manufacturing business.