A process in which one entity takes control over another entity by purchasing a majority of its shares or assets is called acquisition. There are four types of acquisitions: In the horizontal acquisition, one company acquires another company in the same business, industry, or sector. In the vertical acquisition, a company acquires a supplier of inputs or distributors of its products and services or the company to which it sells its products and services. In the conglomerate acquisition, a company acquires another company operating in a different kind of business or sector for diversification purposes. In the congeneric acquisition, the acquired and the acquirer share a similarity.