A market-share acquisition expands a company’s customer base within an existing product category by buying another company and its customers. The target’s customers differ from the acquirer’s, so the target may remain independent initially while customers are eased into the larger company’s orbit. section 31.3.1
Recognize the structure by these features:
- The products occupy the same broad category, but the companies serve different customer groups. section 31.3.1
- The acquirer seeks market share rather than merely the target’s technology or team. section 31.3.1
- Initial independence can preserve customer knowledge and make the transition into the acquirer’s business smoother. section 31.3.1
A familiar pattern
Marriott’s acquisition of Starwood and PayPal’s acquisition of Venmo illustrate market-share acquisitions: each buyer gained access to a customer base in the same general category. section 31.3.1
