27 Terms
Home > Industry/Domain > Banking; Business services > 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
Add a new termContributors in Mergers & acquisitions
Mergers & acquisitions
financial statements
Banking; Mergers & acquisitions
Financial reports of a company which include: Balance Sheet; Income statement (or Profit and Loss statement ("P&L"), Statement of retained earnings which explains the changes in a company's ...
equity
Banking; Mergers & acquisitions
The ownership interests in a company, generally in the form of stock or stock options.
exclusivity
Banking; Mergers & acquisitions
A provision in an agreement, such as a Term Sheet or Letter of Intent, in which the prospective seller agrees not to consider alternative offers or negotiate a separate deal from other suitors for a ...
effective date
Banking; Mergers & acquisitions
The date a contract (e.g., a stock or asset purchase agreement) is signed and becomes legally binding. Unless the contract is signed and closed the same day, there may be a period of time between the ...
earn-out
Banking; Mergers & acquisitions
A term in a stock purchase agreement or asset purchase agreement which entitles the seller to an increase in the purchase price if certain financial milestones are achieved.
due diligence
Banking; Mergers & acquisitions
A process undertaken by potential Acquirers to analyze and assess the desirability, value, and potential of a business which they may acquire.
covenant not to compete
Banking; Mergers & acquisitions
An agreement often signed by an employee or a selling shareholder whereby they agree not to work for competitor companies or form a new competitor business within a specified period after termination ...
