Requisition vs. Acquisition — What's the Difference?
By Tayyaba Rehman & Fiza Rafique — Updated on April 1, 2024
Requisition refers to the formal request for goods, services, or personnel, often within organizations, while acquisition involves obtaining ownership or control over assets or companies.
Difference Between Requisition and Acquisition
Table of Contents
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Key Differences
Requisition is a process used within organizations to formally request goods, services, or personnel. It involves a structured procedure where employees or departments submit requests that need approval from higher management. This system ensures controlled and authorized use of company resources. On the other hand, acquisition is a broader term that refers to the process of obtaining control, ownership, or significant shares of assets, companies, or property. It is commonly used in the context of business mergers, where one company takes over another, or in the procurement of assets.
The scope of requisition is generally internal to an organization and focuses on operational needs such as office supplies, IT equipment, or additional staff. It serves to streamline the process of requesting and approving the use of resources to ensure efficiency and compliance with company policies. Conversely, acquisition is a strategic business move aimed at growth, expansion, or diversification. It often involves significant financial investment and can have a substantial impact on the market position of the acquiring entity.
Requisition processes are typically governed by an organization's internal policies and procedures, which dictate the steps required for submission, review, and approval of requests. These procedures are designed to maintain budgetary control and ensure that expenditures are necessary and justified. Acquisition processes, however, are subject to legal and regulatory frameworks that govern business transactions, requiring due diligence, negotiation, and sometimes regulatory approval to complete.
While the outcome of a requisition is the approval or denial of a request for resources within an organization, the outcome of an acquisition is the transfer of ownership or control of assets or businesses. This distinction highlights the differing objectives of each process: one aims to fulfill internal operational needs, while the other seeks to alter the company's external financial or competitive landscape.
Both requisition and acquisition play critical roles in the management and growth of organizations but address different needs and operate on different scales. Requisition processes facilitate the efficient operation of an organization by managing internal requests for resources, while acquisitions are transformative actions that can significantly impact a company's structure, strategy, and market position.
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Comparison Chart
Definition
Formal request within organizations for goods, services, or personnel.
Process of obtaining control, ownership, or significant shares of assets or companies.
Scope
Internal to an organization, focusing on operational needs.
External, involving strategic business moves for growth or expansion.
Governing Framework
Internal policies and procedures of an organization.
Legal and regulatory frameworks governing business transactions.
Outcome
Approval or denial of resource requests.
Transfer of ownership or control of assets or businesses.
Objective
Streamline internal resource allocation and ensure efficiency.
Achieve growth, expansion, or diversification for the organization.
Compare with Definitions
Requisition
Formal process within organizations for requesting resources like goods or services.
The department submitted a requisition for new laptops to support remote work.
Acquisition
Can significantly alter a company's market position or structure.
The strategic acquisition transformed the company into an industry leader.
Requisition
Aims to meet the operational needs of an organization efficiently.
The requisition for additional staff was made to handle the increased workload.
Acquisition
Involves obtaining assets or businesses outside the organization.
Our recent acquisition included valuable patents and technologies.
Requisition
Used internally to manage and approve requests for resources.
Our requisition process requires approval from two levels of management.
Acquisition
Governed by legal and regulatory considerations.
The acquisition was finalized after regulatory approval from the authorities.
Requisition
Subject to the organization's own procedures and policies.
According to our requisition policy, requests over $500 need the CFO's approval.
Acquisition
The process of obtaining control or ownership of assets, companies, or property.
The company's acquisition of a smaller competitor doubled its market share.
Requisition
Results in the allocation or denial of requested resources.
The requisition for new software licenses was approved after a thorough review.
Acquisition
Aimed at growth, expansion, or diversification.
The acquisition strategy focused on entering new markets in Asia.
Requisition
An official order laying claim to the use of property or materials
I had to make various requisitions for staff and accommodation
Acquisition
An asset or object bought or obtained, typically by a library or museum
The legacy will be used for new acquisitions
Requisition
Demand the use or supply of (something) by official order
The government had assumed powers to requisition cereal products at fixed prices
Acquisition
The learning or developing of a skill, habit, or quality
The acquisition of management skills
Requisition
A formal written request for something needed.
Acquisition
The act of acquiring.
Requisition
A necessity; a requirement.
Acquisition
Something acquired or gained
Added two new acquisitions to my library.
Requisition
The state or condition of being needed or put into service.
Acquisition
The act or process of acquiring.
The acquisition of sports equipment can be fun in itself.
Requisition
(Law) A formal request of one government to another demanding the return of a criminal or fugitive.
Acquisition
The thing acquired or gained; a gain.
That graphite tennis racquet is quite an acquisition.
Requisition
To demand, as for military needs.
Acquisition
(computing) The process of sampling signals that measure real world physical conditions and converting these signals into digital numeric values that can be manipulated by a computer.
Requisition
To make demands of.
Acquisition
The act or process of acquiring.
The acquisition or loss of a province.
Requisition
A formal request for something.
Acquisition
The purchase of one commercial enterprise by another, whether for cash, or in a trade of stock of the purchasing company for that of the purchased company.
Requisition
A formal demand made by one state or government upon another for the surrender or extradition of a fugitive from justice.
Acquisition
The thing acquired or gained; an acquirement; a gain; as, learning is an acquisition.
Requisition
(legal) A notarial demand for repayment of a debt.
Acquisition
The act of contracting or assuming or acquiring possession of something;
The acquisition of wealth
The acquisition of one company by another
Requisition
(military) A demand by the invader upon the people of an invaded country for supplies, as of provision, forage, transportation, etc.
Acquisition
Something acquired;
A recent acquisition by the museum
Requisition
A formal application by one officer to another for things needed in the public service.
A requisition for clothing, troops, or money
Acquisition
The cognitive process of acquiring skill or knowledge;
The child's acquisition of language
Requisition
That which is required by authority; especially, a quota of supplies or necessaries.
Acquisition
An ability that has been acquired by training
Requisition
A call; an invitation; a summons.
A requisition for a public meeting
Requisition
(transitive) To demand something, especially for a military need of staff, supplies, or transport.
Requisition
The act of requiring, as of right; a demand or application made as by authority.
Requisition
That which is required by authority; especially, a quota of supplies or necessaries.
Requisition
A written or normal call; an invitation; a summons; as, a reqisition for a public meeting.
Requisition
To make a reqisition on or for; as, to requisition a district for forage; to requisition troops.
Requisition
To present a requisition to; to summon request; as, to requisition a person to be a candidate.
Requisition
The act of requiring; an authoritative request or demand, especially by a military or public authority that takes something over (usually temporarily) for military or public use
Requisition
An official form on which a request in made;
First you have to fill out the requisition
Requisition
Seizing property that belongs to someone else and holding it until profits pay the demand for which it was seized
Requisition
Make a formal request for official services
Requisition
Demand and take for use or service, especially by military or public authority for public service
Common Curiosities
What is an acquisition?
An acquisition is the process of obtaining control, ownership, or significant shares of assets or companies.
What governs the process of requisition?
Requisition is governed by an organization's internal policies and procedures.
What is a requisition?
A requisition is a formal request within an organization for goods, services, or personnel.
Why are requisitions important for organizations?
They ensure efficient and controlled allocation of resources according to operational needs.
What is the outcome of a requisition?
The outcome is the approval or denial of a request for resources.
What results from an acquisition?
It results in the transfer of ownership or control of assets or businesses.
How do requisition and acquisition differ in scope?
Requisition is internal and operational, while acquisition is a strategic external business move.
Under what frameworks do acquisitions operate?
Acquisitions are subject to legal and regulatory frameworks that govern business transactions.
What are typical examples of requisition requests?
Requests for office supplies, IT equipment, or hiring personnel are common examples.
What kind of companies might a business look to acquire?
Companies that offer strategic advantages, such as market share, technology, or expertise.
What role do regulatory bodies play in acquisitions?
They ensure that acquisitions comply with legal standards and do not harm market competition.
Can a requisition lead to an acquisition?
Not directly; requisitions are for internal resources, while acquisitions involve external assets.
Are acquisitions always successful?
Not always; they require careful planning, due diligence, and integration efforts to succeed.
Why do companies pursue acquisitions?
To achieve growth, diversification, or improve their competitive position in the market.
How does the internal requisition process affect an organization's efficiency?
It streamlines resource allocation, ensuring needs are met promptly and appropriately.
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Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
Co-written by
Fiza RafiqueFiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
