majority-stake-acquisition

Vocabulary Word

Definition

'Majority stake acquisition' means purchasing most parts of a company, usually more than half. This gives the buyer significant control over the company because they own the most shares or 'stakes'.

Examples in Different Contexts

In mergers and acquisitions, 'majority stake acquisition' refers to the purchase of more than half of a company's shares, giving the buyer control over the company. An M&A consultant might comment, 'Our majority stake acquisition strategy focuses on gaining operational control and steering the company towards growth.'

Practice Scenarios

Startup

Scenario:

We've grown substantially in the past two years. We're now looking for strategic partners to scale up our operations.

Response:

We're open to offers, even a majority stake acquisition if it brings the right support and resources for our growth.

Business

Scenario:

We've been looking at expanding our portfolio. This emerging tech firm seems to align with our long-term goals.

Response:

I agree. And the majority stake acquisition in this tech firm would give us control and strategic leverage.