Complementary acquisitions occur when a firm acquires another firm that differs in capabilities, assets, or competencies to complement and better serve the market (Yu et al, 2015). Purchasing another firm's assets creates synergies that significantly change the structure of the industry it enters through the addition of new capacity and the consolidation of market power.

According to classical economics and strategic management literature (Helfat & Eisnehardt, 2004), economies of scale (increasing output and lowering operating costs) and economies of scope (the more product types produced, the lower the production costs) are the two main channels that enable acquisitions to serve consumers better, with more product choices and at lower prices. Both allow acquisitions to generate more value (value added) than simply providing value to consumers, thereby strengthening a higher competitive advantage compared to other companies (Feldman, 2022; Puranam and Vanneste, 2016).