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

dissident shareholders

Banking; Mergers & acquisitions

Those that disagree with a firm’s incumbent management and attempt to change policies by initiating proxy contests to gain representation on the board of directors.

diversifiable risk

Banking; Mergers & acquisitions

The risk specific to an individual firm, such as strikes and lawsuits.

diversification

Banking; Mergers & acquisitions

A strategy of buying firms outside of the company’s primary line of business.

divestiture

Banking; Mergers & acquisitions

The sale of all or substantially all of a company or product line to another party for cash or securities.

divisional organization

Banking; Mergers & acquisitions

An organizational structure in which groups of products are combined into independent divisions or “strategic business units.”

dual class recapitalization

Banking; Mergers & acquisitions

A takeover defense in which a firm issues multiple classes of stock in which one class has voting rights that are 10 to 100 times those of another class. Such stock is also called supervoting stock.

due diligence

Banking; Mergers & acquisitions

The process by which the acquirer seeks to determine the accuracy of the target’s financial statements, evaluate the firm’s operations, validate valuation assumptions, determine fatal flaws, and ...