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

financial synergy

Banking; Mergers & acquisitions

The reduction in the cost of capital as a result of more stable cash flows, financial economies of scale, or a better matching of investment opportunities with available funds.

fixed or constant share-exchange agreement

Banking; Mergers & acquisitions

An exchange agreement in which the number of acquirer shares exchanged for each target share is unchanged between the signing of the agreement of purchase and sale and closing.

fixed value agreement

Banking; Mergers & acquisitions

The value of the price per share is fixed by allowing the number of acquirer shares issued to vary to offset fluctuations in the buyer’s share price.

flip-in poison pill

Banking; Mergers & acquisitions

A shareholders’ rights plan in which the shareholders of the target firm can acquire stock in the target firm at a substantial discount.

flip-over poison pill

Banking; Mergers & acquisitions

A shareholders’ rights plan in which target firm shareholders may convert such rights to acquire stock of the surviving company at a substantial discount.

form of acquisition

Banking; Mergers & acquisitions

The determination of what is being acquired (i.e., stock or assets) and the way in which ownership is transferred.

form of payment

Banking; Mergers & acquisitions

A means of payment: cash, common stock, debt, or some combination. Some portion of the payment may be deferred or dependent on the future performance of the acquired entity.