{"id":2871,"date":"2022-04-08T08:12:54","date_gmt":"2022-04-08T07:12:54","guid":{"rendered":"https:\/\/uk.legalvision.com.au\/?p=2871"},"modified":"2026-07-03T03:10:50","modified_gmt":"2026-07-03T02:10:50","slug":"acquiring-another-business","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/business-sale-purchase\/acquiring-another-business\/","title":{"rendered":"What Do I Need to Look Out for When Acquiring Another Business?"},"content":{"rendered":"\n

An acquisition is where one company buys a majority stake in another, so the target keeps its legal identity but comes under new ownership. This differs from a merger, where two businesses combine into one entity. Before signing anything, you need to assess the target’s finances<\/a>, structure the deal correctly, and check for competition or dispute risks that could affect completion. This article will explain some key points to look out for if you are acquiring another business, and it will touch on some considerations for how to analyse a target company.\u00a0<\/span>
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What is an Acquisition? <\/h2>\n\n\n\n

A company acquisition is where one company acquires a majority stake in a target company. Doing so essentially ‘buys out’ or takes over the target company. Being a majority shareholder in a company means that you can make certain decisions without the consent of all of the other shareholders. <\/span><\/p>\n\n\n\n

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Notably, an acquisition is different from a merger. A merger usually refers to where two companies combine their business practice to form one single entity. On the other hand, an acquisition allows both companies to keep their legal structure and identity. However, the target company becomes a part of the acquiring company.<\/span><\/p>\n<\/div>\n\n\n\n

As mentioned, an acquisition can be a great way of expanding an existing business. It can save you time and help you gain valuable assets. <\/span><\/p>\n\n\n\n

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Key Statistics and Sources<\/strong><\/p>\n

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  1. UK M&A deal count fell in early 2026: <\/strong>There were 352 mergers and acquisitions involving a change in majority ownership recorded in Q1 2026, down from 495 in Q4 2025.<\/li>\n
  2. CMA merger review threshold raised to \u00a3100 million: <\/strong>The CMA’s UK turnover threshold for merger review rose from \u00a370 million to \u00a3100 million from 1 January 2025, alongside a new share of supply test for smaller but concentrated targets.<\/li>\n
  3. Outward UK acquisitions rose in value: <\/strong>The value of outward M&A, where UK companies acquired foreign businesses involving a change in majority ownership, reached \u00a34.7 billion in Q1 2026, up from \u00a33.0 billion in Q4 2025.<\/li>\n<\/ol>\n

    Sources<\/strong><\/p>\n