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

minority investment

Banking; Mergers & acquisitions

A less than controlling interest in another firm. Negative covenant A restriction found in loan agreements on the actions of the borrower. Negotiating price range The difference between the minimum ...

net asset value

Banking; Mergers & acquisitions

The difference between the fair market value of total identifiable acquired assets and the value of acquired liabilities.

net debt

Banking; Mergers & acquisitions

The market value of debt assumed by the acquirer less cash and marketable securities on the books of the target firm.

net operating loss carryforward and carrybacks

Banking; Mergers & acquisitions

Provisions in the tax laws allowing firms to use accumulated net tax losses to offset income earned over a specified number of future years or recover taxes paid during a limited number of prior ...

net purchase price

Banking; Mergers & acquisitions

The total purchase price plus other assumed liabilities less the proceeds from the sale of discretionary or redundant target assets.

net synergy

Banking; Mergers & acquisitions

The difference between estimated sources of value and destroyers of value. Nondiversifiable risk Risk generated by factors that affect all firms, such as inflation and war. Nonrecourse financing ...

no-shop agreement

Banking; Mergers & acquisitions

That which prohibits the takeover target from seeking other bids or making public information not currently readily available while in discussions with a potential acquirer.