You want to buy other companies to expand your asset base. In time, you will want a major company in your industry to buy you. As a public company, you should use your strong share price to buy private companies. When it comes time for you to be bought, your strong share price will ensure a sale price far in excess of your public company's value based upon its balance shell. Your business plan should reflect your M&A goals. Merger and acquisition are the combination of two companies by the process of joining or sale. If one company survives it is a merger, if both survive, it's an acquisition.