Mergers & acquisitions

Mergers & acquisitions

Referring to the aspect of corporate strategy, finance and management that deals with the buying, selling or combining of different companies that can assist a growing company to grow rapidly without having to create another business entity.

Industry: Banking; Business services

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Mergers & acquisitions

transfer taxes

Banking; Mergers & acquisitions

State taxes paid whenever titles to assets are transferred, as in an asset purchase.

two-tiered offer

Banking; Mergers & acquisitions

A tender offer in which target shareholders receive an offer for a specific number of shares. Immediately following this offer, the bidder announces its intentions to purchase the remaining shares at ...

type A reorganization

Banking; Mergers & acquisitions

A tax-free merger or consolidation in which target shareholders receive cash, voting or nonvoting common or preferred stock, or debt for their shares. At least 50% of the purchase price must be in ...

type B stock-for-stock reorganization

Banking; Mergers & acquisitions

A tax-free transaction in which the acquirer uses its voting common stock to purchase at least 80% of the voting power of the target’s outstanding voting stock and at least 80% of each class of ...

type C stock-for-assets reorganization

Banking; Mergers & acquisitions

A tax-free transaction in which acquirer voting stock is used to purchase at least 80% of the fair market value of the target’s net assets.

valuation cash flows

Banking; Mergers & acquisitions

Restated GAAP cash flows used for valuing a firm or a firm’s assets.

variable growth valuation model

Banking; Mergers & acquisitions

A valuation method that assumes that a firm’s cash flows will experience periods of high growth followed by a period of slower, more sustainable growth. Sometimes referred to as the supernormal ...