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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Contributors in Mergers & acquisitions

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Mergers & acquisitions

earnouts

Banking; Mergers & acquisitions

Payments to the seller based on the acquired business achieving certain profit or revenue targets.

economic value

Banking; Mergers & acquisitions

The present value of a firm’s projected cash flows.

economies of scale

Banking; Mergers & acquisitions

The spreading of fixed costs over increasing production levels.

economies of scope

Banking; Mergers & acquisitions

The use of a specific set of skills or an asset currently used to produce a specific product to produce related products.

effective control

Banking; Mergers & acquisitions

Control achieved when one firm has purchased another firm’s voting stock; it is not likely to be temporary. There are no legal restrictions on control such as from a bankruptcy court, and there are ...

employee stock ownership plan (ESOP)

Banking; Mergers & acquisitions

A trust fund or plan that invests in the securities of the firm sponsoring the plan on behalf of the firm’s employees. Such plans are generally defined contribution employee-retirement plans.