What is it called when a company purchases businesses of a single enterprise

When a company buys business from a single company it s called an acquisition.

The participation or acquisition of companies takes place when a company buys part of the capital stock of another company, with the intention of controlling it totally or partially.

The acquisition companies will give rise to different levels or degrees of control according to the percentage of share capital of the acquired company and according to the manner in which the rest of the shares are distributed among other shareholders : large share packages in hands of very few individuals or, large number of shareholders with little individual participation.

This type of strategy deals with the combination and acquisition of other companies as well as other assets. The decision to make a merger or an acquisition is an economic decision, specifically an investment decision, understood as such, the allocation of resources with the hope of obtaining future income to recover the funds invested and achieve a certain benefit.

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