Beachhead Acquisition

A beachhead acquisition refers to a strategy where a company acquires a smaller firm to establish a presence in a new market or industry. This initial acquisition acts as a "beachhead," allowing the acquiring company to gain a foothold in the market and expand its operations from there. The beachhead strategy is often used in highly competitive or unfamiliar markets, where the acquiring company needs to establish itself before making larger investments.

Example

A large tech company might acquire a small, specialized software firm in a new geographic region to enter that market, using the acquired company as a base for further expansion.