Why has the foreign investment gone into the aquisition of existing companies rather than establishing new one

why has most of the foreign investment gone into the aquisition of existing companies rather than establishing new ones?

Existing companies will be much easier to acquire as these are normally just stock purchases. This type of transaction is often called buying a "shell".

As a comparison, it is like buying an older car with a good reputation and putting a new motor into it rather then taking the risk of new car without a track record.

Companies will also do this as a benefit if the shell is established versus launching into a market that they have no name recognition.

By using existing company, they don't have to start over. It saves much time. The existing company might have established market and customer.

Because sometimes its cheaper to buy an their intangible assets and know how than to start from the beginning, Also brand recognition and market share.

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