During the growth stage of the industry life cycle, acquisitions tend to involve the purchase of start-up firms by well-established firms.

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During the growth stage of the industry life cycle, acquisitions tend to involve the purchase of firms that are similar in size or slightly smaller by well-established firms. This is because the industry is growing, and there are fewer start-up firms. It is during the early stage of the industry life cycle that start-up firms are more likely to be acquired by established firms.

During the Growth Stage of the Industry Life Cycle, Acquisitions