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

legal insolvency

Banking; Mergers & acquisitions

When a firm’s liabilities exceed the fair market value of its assets.

letter of intent

Banking; Mergers & acquisitions

Preliminary agreement between two companies intending to merge that stipulates major areas of agreement between the parties.

leveraged buyout

Banking; Mergers & acquisitions

Purchase of a company financed primarily by debt.

leveraged loans

Banking; Mergers & acquisitions

Unrated or noninvestment-grade bank loans whose interest rates are equal to or greater than the London Inter Bank Rate plus 150 basis points.

liquidating dividend

Banking; Mergers & acquisitions

Proceeds left to shareholders after a company is liquidated and outstanding obligations to creditors are paid off.

liquidation

Banking; Mergers & acquisitions

The value of a firm’s assets sold separately less its liabilities and expenses incurred in breaking up the firm.

liquidity discount

Banking; Mergers & acquisitions

The discount or reduction in the offer price for the target firm made by discounting the value of the target firm estimated by examining the market values of comparable publicly traded firms to ...