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Taking over a competitor would mean the business will buy over the competitor's business. However, should the business do not have enough cashflow, they will require to more finances like loans, which the business will have to pay interest including the loan amount. This would increase cost. But as a large business will likely have a good amount of retained profit, they may be able to takeover without additional finances. Takeover would also enable the business to grow their market share quickly, as they will receive the revenue already earned by the competitor. As such, taking over a competitor's business may be the best way for a large business to grow.