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Acquisition vs. Procurement: What's the Difference?

Edited by Huma Saeed || By Sawaira Riaz || Updated on October 4, 2023
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Key Differences

Acquisition and procurement are two terms that are often used interchangeably in the business world, though they have distinct differences. Acquisition specifically pertains to obtaining ownership or control of assets or entities. Procurement, conversely, is the overall process involved in obtaining goods, services, or contracts from external sources.
Sawaira Riaz
Oct 04, 2023
It's pertinent to note that acquisition often implies a longer-term engagement and integration process. It may involve substantial alterations in the obtained entity’s legal and organizational status. In contrast, procurement is primarily concerned with sourcing and purchasing and does not involve changes in legal structures or ownership.
Sawaira Riaz
Oct 04, 2023
Acquisition is often associated with strategies for business growth and expansion, such as mergers and acquisitions (M&A). It involves acquiring other businesses or assets to build company strength. On the other hand, procurement encompasses a range of activities, from identifying needs, sourcing suppliers, negotiating price, and ensuring timely delivery, which cater to the operational requirements of an organization.
Sawaira Riaz
Oct 04, 2023
Acquisition can alter the financial and operational status of a business, involving complex regulatory and financial processes. This complexity often necessitates in-depth analysis and regulatory compliance. Conversely, procurement, while crucial to operational success, is an ongoing business function that ensures the timely provision of necessary resources and tends not to impact a company’s organizational structure or ownership.
Harlon Moss
Oct 04, 2023
In business contexts, acquisition is seen as a strategic move to acquire valuable assets or businesses which can enhance the acquirer’s market position. Procurement is a crucial operational function ensuring the smooth acquisition of essential goods and services from suppliers, ensuring that all operational and production processes can proceed without interruption.
Aimie Carlson
Oct 04, 2023
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Comparison Chart

Definition

Obtaining ownership or control of assets/entities.
The process to find, acquire, buy goods or services.
Sawaira Riaz
Oct 04, 2023

Word Form

Noun
Noun
Sawaira Riaz
Oct 04, 2023

Use in Sentence

"The acquisition of the company was finalized."
"The procurement of supplies is essential for production."
Sawaira Riaz
Oct 04, 2023

Associated Words

Acquire, acquirer
Procure, procurer
Sara Rehman
Oct 04, 2023

Field/Industry Usage

Common in finance and business (M&A).
Widely used in supply chain management.
Janet White
Oct 04, 2023
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Acquisition and Procurement Definitions

Acquisition

"Language acquisition in early childhood is often much quicker than in adulthood."
Acquisition can also refer to the strategic obtaining of resources or data.
Harlon Moss
Oct 04, 2023

Procurement

Procurement is the action of obtaining or procuring something.
The procurement of necessary materials enabled the project to continue.
Sara Rehman
Oct 04, 2023

Acquisition

"The collector's acquisition of the rare artifact was celebrated among his peers."
Aimie Carlson
Oct 04, 2023

Procurement

Procurement can also mean the establishment of agreements with suppliers.
Through careful negotiation, procurement established a beneficial agreement with the supplier.
Sawaira Riaz
Oct 04, 2023

Acquisition

"The acquisition of the smaller tech firm by the multinational corporation was finalized last week."
In learning, acquisition refers to the initial stage of learning or encoding new information.
Sawaira Riaz
Oct 04, 2023

Procurement

In business, procurement refers to the process of locating and acquiring goods and services from suppliers.
The procurement team ensured the timely delivery of equipment for the project.
Janet White
Oct 04, 2023

Acquisition

"The spy was skilled in the acquisition of classified information."
In finance, acquisition refers to the attainment of a particular asset or object of value.
Aimie Carlson
Oct 04, 2023

Procurement

In a strategic sense, procurement involves ensuring the best possible cost for purchases of goods and services.
Efficient procurement strategies enabled the company to maximize its operational budget.
Janet White
Oct 04, 2023

Acquisition

The act of acquiring.
Sawaira Riaz
Dec 26, 2022

Procurement

Procurement may involve activities like supplier research, negotiations, and strategic selection.
In an effort to adopt green practices, the company focused procurement efforts on environmentally responsible suppliers.
Aimie Carlson
Oct 04, 2023

Acquisition

Something acquired or gained
Added two new acquisitions to my library.
Sawaira Riaz
Dec 26, 2022

Procurement

To get by special effort; obtain or acquire
Managed to procure a pass.
Sawaira Riaz
Dec 26, 2022

Acquisition

The act or process of acquiring.
The acquisition of sports equipment can be fun in itself.
Sawaira Riaz
Dec 26, 2022

Procurement

To bring about; effect
Procure a solution to a knotty problem.
Sawaira Riaz
Dec 26, 2022

Acquisition

The thing acquired or gained; a gain.
That graphite tennis racquet is quite an acquisition.
Sawaira Riaz
Dec 26, 2022

Procurement

To obtain (a sexual partner) for another.
Sawaira Riaz
Dec 26, 2022

Acquisition

(computing) The process of sampling signals that measure real world physical conditions and converting these signals into digital numeric values that can be manipulated by a computer.
Sawaira Riaz
Dec 26, 2022

Procurement

To obtain sexual partners for others.
Sawaira Riaz
Dec 26, 2022

Acquisition

The act or process of acquiring.
The acquisition or loss of a province.
Sawaira Riaz
Dec 26, 2022

Procurement

(uncountable) The purchasing department of a company.
Sawaira Riaz
Dec 26, 2022

Acquisition

The purchase of one commercial enterprise by another, whether for cash, or in a trade of stock of the purchasing company for that of the purchased company.
Sawaira Riaz
Dec 26, 2022

Procurement

(countable) The act of procuring or obtaining; obtainment; attainment.
He was responsible for the procurement of materials and supplies.
I have a lot of experience in the procurement of construction materials and sub-contracts.
Sawaira Riaz
Dec 26, 2022

Acquisition

The thing acquired or gained; an acquirement; a gain; as, learning is an acquisition.
Sawaira Riaz
Dec 26, 2022

Procurement

Efficient contrivance; management; agency.
They think it done by her procurement. -Dryden.
Sawaira Riaz
Dec 26, 2022

Acquisition

The act of contracting or assuming or acquiring possession of something;
The acquisition of wealth
The acquisition of one company by another
Sawaira Riaz
Dec 26, 2022

Procurement

The act of procuring or obtaining; obtainment; attainment.
Sawaira Riaz
Dec 26, 2022

Acquisition

Something acquired;
A recent acquisition by the museum
Sawaira Riaz
Dec 26, 2022

Procurement

Efficient contrivance; management; agency.
They think it doneBy her procurement.
Sawaira Riaz
Dec 26, 2022

Acquisition

The cognitive process of acquiring skill or knowledge;
The child's acquisition of language
Sawaira Riaz
Dec 26, 2022

Procurement

The act of getting possession of something;
He was responsible for the procurement of materials and supplies
Sawaira Riaz
Dec 26, 2022

Acquisition

An ability that has been acquired by training
Sawaira Riaz
Dec 26, 2022

Acquisition

"The acquisition of new books broadened the library's collection."
In business, acquisition is the purchase of one company by another.
Sawaira Riaz
Oct 04, 2023

FAQs

Is acquisition used only in business contexts?

No, it can be used broadly to mean obtaining anything, though it's often associated with business and finance.
Sawaira Riaz
Oct 04, 2023

What is a synonym for acquisition?

“Acquirement” can be used as a synonym in certain contexts.
Sawaira Riaz
Oct 04, 2023

What does acquisition generally mean?

Acquisition typically refers to the act of obtaining or gaining possession of something.
Sawaira Riaz
Oct 04, 2023

Does acquisition always imply purchasing?

No, it may simply mean obtaining, which might not necessarily involve a transaction.
Sawaira Riaz
Oct 04, 2023

Can acquisition refer to obtaining skills or knowledge?

Yes, for instance, "language acquisition" refers to learning a new language.
Sawaira Riaz
Oct 04, 2023

Can procurement apply to both goods and services?

Yes, procurement can refer to obtaining both goods and services from external sources.
Sawaira Riaz
Oct 04, 2023

What does procurement refer to in a general sense?

Procurement generally involves the process of finding, acquiring, and buying goods, services, or works.
Janet White
Oct 04, 2023

Does procurement only relate to business?

No, it's commonly used in business but applies anywhere goods/services are obtained.
Sawaira Riaz
Oct 04, 2023

Can a company have both procurement and acquisition departments?

Yes, a procurement department typically manages buying, while an acquisition department may handle mergers and purchases of companies or assets.
Sawaira Riaz
Oct 04, 2023

Can you provide an example of using both terms in one sentence?

"The company's procurement strategy focused on ethical suppliers, following the acquisition of a brand known for sustainability."
Aimie Carlson
Oct 04, 2023

Is there a term that encompasses both procurement and acquisition?

“Purchasing” might encompass both, though it lacks the specificity of each term.
Janet White
Oct 04, 2023

What is a key component of procurement?

A key aspect involves sourcing and establishing agreements with suppliers.
Sawaira Riaz
Oct 04, 2023

Can procurement involve legal considerations?

Yes, it often involves negotiating and establishing contracts.
Harlon Moss
Oct 04, 2023

Do both terms imply a legal change in ownership?

Acquisition usually involves a change in ownership, while procurement does not.
Aimie Carlson
Oct 04, 2023

Can acquisition ever involve a hostile action?

In business, a "hostile acquisition" refers to obtaining control without the consent of the entity being acquired.
Aimie Carlson
Oct 04, 2023

Are acquisition and procurement interchangeable?

Not exactly, while related, acquisition often implies obtaining ownership, while procurement focuses on the process of obtaining goods/services.
Harlon Moss
Oct 04, 2023

Can both terms be used in everyday language?

Yes, though acquisition is more common in everyday language, procurement tends to be used in a business or organizational context.
Harlon Moss
Oct 04, 2023

Does acquisition always involve a financial transaction?

Not always, as acquisition might involve gaining something without purchasing, like knowledge.
Janet White
Oct 04, 2023

Which term is broader, acquisition or procurement?

Procurement is broader, involving multiple steps and processes, while acquisition refers specifically to the act of obtaining.
Sawaira Riaz
Oct 04, 2023

Can procurement involve long-term agreements?

Yes, procurement often involves establishing long-term purchasing agreements with suppliers.
Sawaira Riaz
Oct 04, 2023
About Author
Written by
Sawaira Riaz
Sawaira is a dedicated content editor at difference.wiki, where she meticulously refines articles to ensure clarity and accuracy. With a keen eye for detail, she upholds the site's commitment to delivering insightful and precise content.
Edited by
Huma Saeed
Huma is a renowned researcher acclaimed for her innovative work in Difference Wiki. Her dedication has led to key breakthroughs, establishing her prominence in academia. Her contributions continually inspire and guide her field.

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