Acquisition” refers simply to when one business purchases, or acquires, all or a portion of another business. For most Entrepreneurs, an Acquisition is the most common way to achieve a successful Exit from the business.

An Acquisition can be a Stock Acquisition or an Asset Acquisition. With a Stock Acquisition, the Acquirer typically purchases all of, or a controlling interest in, the outstanding shares of Capital Stock of the target company. With an Asset Acquisition, the Acquirer purchases some or all of the Assets (but not the Capital Stock) of the target company and often assumes certain of its Liabilities.