SCLCI's Back-to-Basics: 5 Minute Explanation of "Acquisition Costs"

The series breaks down similar concepts in quick comparisons and makes a clarification simple to understand. Follow topics into greater detail within SCLCI Early Edition's case studies and articles.

Acquisition Costs:

Transaction Costs + Purchase Price

The reason that corporate acquisitions are a strategic activity for any business is that;

1. New technical capabilities can be absorbed into the product lines and services, and

2. Existing markets can be reached quickly with the acquired company’s presence in established distribution networks, and

3. Corporate leadership can hasten the development of business units using new talent with industry expertise and fresh management perspectives.