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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.

Contributors in Mergers & acquisitions

Mergers & acquisitions

vertical merger

Banking; Mergers & acquisitions

One in which companies that do not own operations in each major segment of the value chain choose to backward integrate by acquiring a supplier or to forward integrate by acquiring a distributor.

voluntary bankruptcy

Banking; Mergers & acquisitions

A situation in which the debtor firm files for bankruptcy.

voluntary liquidation

Banking; Mergers & acquisitions

Sale by management that concludes that the sale of the firm in parts could realize greater value than the value created by a continuation of the combined corporation.

weighted-average cost of capital

Banking; Mergers & acquisitions

A broader measure than the cost of equity that represents the return that a firm must earn to induce investors and lenders to buy its stock and bonds.

white knight

Banking; Mergers & acquisitions

A potential acquirer that is viewed more favorably by a target firm’s management and board than the initial bidder.

winner’s curse

Banking; Mergers & acquisitions

The tendency of the auction winners to show remorse, believing that they may have paid too much.

zero-growth valuation model

Banking; Mergers & acquisitions

A valuation model that assumes that free cash flow is constant in perpetuity.

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