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What is beachhead acquisition?

Beachhead acquisition

It's when a company buys a business in another geographic market as a first point of access to that new market and a starting point for future growth. Essentially it is an acquisition that gives the buyer a foothold to expand into another market.

Where have you heard about beachhead acquisition?

Beachhead is originally a military term. A beachhead is a defended position on an enemy shoreline that can be used both as a landing spot for troops and supplies and as a base to launch subsequent attacks from.

What you need to know about beachhead acquisition.

Similarly to its use in the military, a beachhead acquisition gives the acquiring business a foothold from which to invade a new market. It gives the company a chance to test and adjust to the new market, and assess the potential performance of its products or services within that new market, without the risks associated with a larger acquisition.

As well as expanding into new geographic markets, a beachhead acquisition might refer to a business buying a company that they can use as a jumping off point to expand into a new industry.

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