The intent of the acquisition is to circumvent the takeover of the object of interest by a third, unfriendly entity, which is perceived to be less favorable.
The knight might defeat the undesirable entity by offering a higher and more enticing bid, or strike a favorable deal with the management of the object of acquisition.
The financial standing of the struggling firm could prevent any other entity being interested in an acquisition.
A number of variations of the term have been used and these include: a gray knight which is an acquiring corporation or individual that enters a bid for a hostile takeover in addition to the target firm and first bidder, perceived as more favorable than the black knight (unfriendly bidder), but less favorable than the white knight (friendly bidder).
A white squire does not have the intention, but rather serves as a figurehead in defense of a hostile takeover.