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An acquisition is taking over of another company.It can be financed through internal cash accruals, debt, bonds,stock options. Every profit making company has a cash surplus, and this is the first asset that is used to finance the acquisition.Next,it can take loans from banks or even raise capital through an IPO(Initial Public Offering) or a FPO(Follow on public offer).

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Q: How does a company finance an acquisition?
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