acquirer

noun ac·quir·er \ ə-ˈkwī(-ə)r-ər \
Updated on: 13 Oct 2017

Definition of acquirer

:one that acquires; especially :a company that acquires another company

Recent Examples of acquirer from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'acquirer.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of acquirer

1607


Financial Definition of ACQUIRER

acquirer

What It Is

An acquirer is a person or company that purchases all or a portion of an asset or company.

How It Works

Company XYZ wants to acquire Company ABC. Company XYZ might just start buying ABC shares on the open market, but once Company XYZ acquires 5% of ABC, it must formally (and publicly) declare how many shares it owns to the Securities and Exchange Commission. Company XYZ must also state whether it intends to buy ABC or just hold its existing shares as an investment. In either case, Company XYZ is an acquirer. The term is mostly used in the context of purchasing a majority of another company, however.

Why It Matters

Acquirers often make acquisitions with cash, but they also use debt and their own stock as well, and there are often tax consequences associated with each form of currency.

Acquirers acquire other companies because they think they can create a bigger, more competitive, more cost-efficient entity. This synergy -- that is, the idea that the two companies together are more valuable to the shareholders than they are apart -- is elusive, but it is what justifies most acquisitions. After all, acquirers always have the much harder option of trying to "grow their own" by starting their own competitive ventures instead of buying someone else's. Targets sell their companies to acquirers because at the end of the day, the price is right. And on both sides, a well-executed acquisition can be the crowning jewel of a CEO's career.


Seen and Heard

What made you want to look up acquirer? Please tell us where you read or heard it (including the quote, if possible).

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!

WORD OF THE DAY

readily predictable

Get Word of the Day daily email!

Test Your Vocabulary

The Exceptions Quiz III

  • one-green-toy-robot-amidst-many-red-toy-robots
  • Which of these words does not mean "nonsense"?
True or False

Test your knowledge - and maybe learn something along the way.

TAKE THE QUIZ
SCRABBLE® Sprint

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!