Companies pursue acquisitions for several reasons: 1. Market Share: Acquisitions can help companies quickly increase their market share. 2. Diversification: By acquiring another company, businesses can diversify their products, services, or markets. 3. Synergy: The combined company is often more valuable than the two separate entities due to synergies in operations, finance, and marketing. 4. Economies of Scale: Larger companies often benefit from economies of scale, reducing costs per unit. 5. Technological Advancements: Acquiring a company with advanced technology can give the acquiring company a competitive edge.