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

buyout

Banking; Mergers & acquisitions

Change in controlling interest in a corporation. Capital asset pricing model A framework for measuring the relationship between expected risk and return.

capitalization multiple

Banking; Mergers & acquisitions

The multiple estimated by dividing 1 by the estimated discount or capitalization rate that can be used to estimate the value of a business by multiplying it by an indicator of value such as free cash ...

capitalization rate

Banking; Mergers & acquisitions

The discount rate used by practitioners if the cash flows of the firm are not expected to grow or are expected to grow at a constant rate indefinitely.

cash-for-assets

Banking; Mergers & acquisitions

An acquisition in which the acquirer pays cash for the seller’s assets and may choose to accept some or all of the seller’s liabilities.

cash-out statutory merger

Banking; Mergers & acquisitions

A merger in which the shareholders of the selling firm receive cash or some form on nonvoting investment (e.g., debt, or nonvoting preferred or common stock) for their shares.

certificate of incorporation

Banking; Mergers & acquisitions

A document received from the state once the articles of incorporation have been approved.

classified board election

Banking; Mergers & acquisitions

An antitakeover defense involving the separation of a firm’s board into several classes, only one of which is up for election at any one point in time. Also called a staggered board.