Answer:
Insolvency – One reason a company might acquire another company is to gain its assets at a bargain price. If the acquiring company is not doing well, it is likely looking for a buyer to save them. This means that the acquiring company will be sold at a lower-than-market price.
To “go public” – Becoming the target of an acquisition is an alternative to issuing an Initial Public Offering (IPO). Instead of going through the expense and paperwork of going public, a larger company may buy the smaller company, paying the owners a large amount of money for its assets, business processes, and customers. This is a less complex way for entrepreneurs to cash in on the business they founded.
To combine assets – Many times, two businesses might discuss merging because each has an asset or business process that the other wants. This could be a lucrative customer list, a proprietary technology, or an excellent distribution system. In this case, the two companies issue an agreed-upon number of new stocks to shareholders with the new company’s name. The new stock would ideally have a higher market value than the original stock.
Explanation: plato