Acquisition Definition

The process of obtaining something. Acquisition can be thought of (in the most simple terms) on a personal level as simply buying or obtaining something. For example, a trip to the local grocery store can be thought of as food acquisition.

In the financial world, an acquisition usually refers to the purchase of one company by a larger company. Many companies have entire departments specializing in the acquisition of valuable smaller companies. Thus, a small home mortgage company might be acquired by a much larger mortgage company resulting in the legal transfer of many mortgage loans from the original issuer to a new mortgage holder (or lender). Or, your local bank might be acquired by a national bank seeking rapidly to establish a local market presence.