What Is A Takeover?

Patrick Curtis

Reviewed by

Patrick Curtis WSO Editorial Board

Expertise: Investment Banking | Private Equity

A takeover is an action by a corporation to assume control of a target firm. This is done by buying either all or most of the target's ownership stakes. Takeovers can either be friendly and favorable, or unwelcome and hostile in which case the owners of the target company tend to do anything they can to prevent the takeover.

Typically takeovers are undertaken in order to expand into a new sector or to grow within the sector (i.e. increase market share). For example, if a logging firm has one competitor in the surrounding area, they may simply buy the competitor and run a monopoly business.

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Patrick Curtis

Patrick Curtis is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. He has experience in investment banking at Rothschild and private equity at Tailwind Capital along with an MBA from the Wharton School of Business. He is also the founder and current CEO of Wall Street Oasis. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.