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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

debt-for-equity swap

Banking; Mergers & acquisitions

Creditors surrender a portion of their claims on the firm in exchange for an ownership position in the firm.

debtor-in-possession

Banking; Mergers & acquisitions

On the filing of a reorganization petition, the firm’s current management remains in place to conduct the ongoing affairs of the firm.

debt restructuring

Banking; Mergers & acquisitions

Involves concessions by creditors that lower an insolvent firm’s payments so that it may remain in business.

definitive agreement of purchase and sale

Banking; Mergers & acquisitions

The legal document indicating all of the rights and obligations of the parties both before and after closing.

destroyers of value

Banking; Mergers & acquisitions

Factors that can reduce the future cash flow of the combined companies.

discounted cash flow

Banking; Mergers & acquisitions

The conversion of future to current cash flows by applying an appropriate discount rate.

discount rate

Banking; Mergers & acquisitions

The opportunity cost associated with investment in the firm used to convert the projected cash flows to present values.

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