9 Terms
Home > Industry/Domain > Banking; Business services > 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
Add a new termContributors in Mergers & acquisitions
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 ...
