2 Nov 2008

Acquisition

A company buys another company:
  1. To acquire the technologies owned by the other company.
  2. To acquire the talents (human resource), or assets owned by other company.
  3. To add its product/solution offerings. More product = more money.
  4. To increase its market share, acquire another company means acquire its clients, and prospects (and maybe competitors).
  5. To upsell products to acquired and old clients.
  6. To kill a competitor. Buy your competitor and neglect its products, and your product will be #1 eventually. This is not recommended by the way.
  7. Too much money in pocket, need to spend somewhere. :|
*pointless post actually...*