What is an Acquirer?
An acquirer is a person or company that purchases all or a portion of an asset or company.
How Does an Acquirer Work?
Company XYZ wants to acquire Company ABC. Company XYZ might just start buying ABCon the open , but once Company XYZ acquires 5% of ABC, it must formally (and publicly) declare how many it owns to the Securities and Exchange . Company XYZ must also state whether it intends to buy ABC or just hold its existing as an . In either case, Company XYZ is an acquirer. The term is mostly used in the context of purchasing a majority of another company, however.
Why Does an Acquirer Matter?
Acquirers acquire other companies because they think they can create a bigger, more competitive, more cost-efficient entity. This synergy -- that is, the idea that the two companies together are more valuable to the shareholders than they are apart -- is elusive, but it is what justifies most acquisitions. After all, acquirers always have the much harder of trying to "grow their own" by starting their own competitive ventures instead of buying someone else's. Targets sell their companies to acquirers because at the end of the day, the price is right. And on both sides, a well-executed can be the crowning jewel of a 's career.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
As a financial planner, I am all about sharing your financial success. However, if one more person walks into my office asking to buy stock...Read More →
Many parents want to get a jump-start on college savings, and the smartest strategy depends on a family's own financial situation. Whether you can afford to set aside $25 per month or $28,000 per...Read More →