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

self-tender offer

Banking; Mergers & acquisitions

A tender offer used when a firm seeks to repurchase its stock from its shareholders.

share-exchange ratio

Banking; Mergers & acquisitions

The number of shares of the acquirer’s stock to be exchanged for each share of the target’s stock.

shareholders’ interest theory

Banking; Mergers & acquisitions

The presumption that management resistance to proposed takeovers is a good bargaining strategy to increase the purchase price for the benefit of the target firm’s shareholders.

shark repellents

Banking; Mergers & acquisitions

Specific types of takeover defenses that can be adopted by amending either a corporate charter or its bylaws.

shell corporation

Banking; Mergers & acquisitions

One that is incorporated but has no significant assets or operations. Sources of value Factors increasing the cash flow of the combined companies.

spin-off

Banking; Mergers & acquisitions

A transaction in which a parent creates a new legal subsidiary and distributes shares it owns in the subsidiary to its current shareholders as a stock dividend.

split-off

Banking; Mergers & acquisitions

A variation of a spin-off in which some parent company shareholders receive shares in a subsidiary in return for relinquishing their parent company shares.