Which type of acquisition happens when there is no forceful acquisition and the entire process is cordial?

Friendly acquisition

The correct answer is option (1) - Friendly acquisition.

There are four types of acquisitions:

1. Friendly acquisition: Both the companies approve of the acquisition under friendly terms. There is no forceful acquisition and the entire process is cordial.

2. Reverse acquisition : A private company takes over a public company.

3. Back flip acquisition : A very rare case of acquisition in which the purchasing company becomes a subsidiary of the purchased company.

4. Hostile acquisition : Here, as the name suggests, the entire process is done by force. The smaller company is either driven to such a condition that it has no option but to say yes to the acquisition to save its skin or the bigger company just buys off all its share, thereby establishing majority and hence initiating the acquisition.