Monday, December 19, 2016
Business Expansion through Acquisitions
Connecticut-based Great Point Partners is a healthcare investment firm that was founded in 2003. Great Point Partners invests in public and private sector healthcare organizations.
Recently, the firm announced an acquisition completed by one of its portfolio companies, Aris Radiology. Aris acquired US Teleradiology in October of 2016, enhancing its status as one of the leading radiology providers in the United States. An acquisition is a common business tactic implemented by corporations as part of a broader growth strategy.
Acquisitions refer to one corporation assuming control of another through cash transactions, the purchase of shares, or both. Acquisitions – also referred to as takeovers – are considered to be either friendly or hostile. A friendly acquisition occurs when the firm being acquired has agreed to the takeover and is involved in the process, while a hostile takeover does not include this mutual agreement. In a hostile acquisition, the acquiring firm forces the takeover to move forward by aggressively purchasing a majority share in the business.