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

tax-free reorganization

Banking; Mergers & acquisitions

Nontaxable transactions usually involving mergers, with the form of payment primarily acquirer stock exchanged for the target’s stock or assets.

tax-free transactions

Banking; Mergers & acquisitions

Transactions in which the form of payment is primarily acquiring company stock. Also called tax-free reorganizations.

tax shield

Banking; Mergers & acquisitions

The reduction in the firm’s tax liability due to the tax deductibility of interest. Technical insolvency A situation in which a firm is unable to pay its liabilities as they come due. Tender offer ...

terminal growth value

Banking; Mergers & acquisitions

The discounted value of the cash flows generated during the stable growth period. Also called the sustainable, horizon,or continuing growth value.

term loan

Banking; Mergers & acquisitions

A loan usually having a maturity of two to ten years and secured by the asset being financed, such as new capital equipment.

term sheet

Banking; Mergers & acquisitions

A document outlining the primary areas of agreement between the buyer and the seller, which is often used as the basis for a more detailed letter of intent.