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

From an investment perspective, 'majority stake acquisition' is pursued for gaining significant influence and return on investment in another company. An investor might say, 'We view our majority stake acquisition as a long-term investment to shape the company's future and maximize returns.'

Practice Scenarios

Leadership

Scenario:

Our plan is to break into the healthcare sector. Investing in this pharmaceutical start-up could be a smart move.

Response:

We should conduct due diligence before moving forward with any majority stake acquisition to prevent future challenges.

Finance

Scenario:

This startup has shown consistently robust growth. It could prove to be a valuable addition to our company assets.

Response:

If the numbers add up, we should contemplate a majority stake acquisition and consolidate our position in the market.