An acquisition is the purchase of one company (the target) by another (the acquirer), the most common exit path for venture-backed startups by far. It is typically structured as cash, acquirer stock, or a mix of both, motivated either strategically (acquirer wants the target's product, team, customers, market position, or technology) or financially (private equity acquiring for cash-flow returns). It is the exit most founders actually achieve, and the one with the most variance in outcome quality depending on deal structure.
The major acquisition types: strategic acquisition (an operating company acquires the target to advance its own product, market, or competitive position; pays based on strategic value, often premium prices f...