There are four types of acquisitions:
1. Friendly acquisition: Here, both the companies approve of the acquisition under friendly terms. There is no use of force or pressure and every thing gets over cordially.
2. Reverse acquisition: Here, a private company takes over a public company.
3. Rack flip acquisition: Here, the purchasing company becomes a subsidiary of the purchased company.
4. Hostile acquisition: Here, the entire process is based on force. The smaller company is forced to say yes to the acquisition or the bigger company just buys off all its share.
