Absorbed Business:
A term used to describe a business entity that has been fully integrated or merged into another company or organisation. In an absorbed business scenario, the absorbed company’s assets, liabilities, operations, and employees are assimilated into the acquiring company, resulting in the absorbed business ceasing to exist as a separate entity. This process typically involves the transfer of ownership, control, and resources from the absorbed business to the acquiring company, which assumes all responsibilities and obligations associated with the absorbed business. The absorption of a business can occur through various means, such as a merger, acquisition, or consolidation, and is often undertaken to achieve synergies, economies of scale, or strategic objectives.
An absorbed business refers to a company that has been taken over or acquired by another company. In this process, the assets, liabilities, and operations of the absorbed business are transferred to the acquiring company. The absorbed business ceases to exist as a separate entity and becomes part of the acquiring company. This transfer of ownership and control is typically governed by legal agreements and regulations, and may involve the approval of shareholders and regulatory authorities.
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This glossary post was last updated: 29th March 2024.
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