Access to an interesting technology: Small companies, often financed by investors willing to go for a home run, can often afford to take big chances in research. And when these small companies make major discoveries or create products that reinvent categories, larger companies may look at them enviously. Meanwhile, to turn a small company into one big enough to distribute products worldwide takes money and time the company may lack. These factors combine into why it's often best for an established company to buy a smaller one. The established company can quickly incorporate the technology into its products and get it out into the hands of consumers.