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

Defense Strategies

Business services; Mergers & acquisitions

To protect the interests of stockholders from budding acquirer(s), there are different strategies that can be implemented. Here are some combat strategies, which a company can implement, in case of a ...

Super Majority

Business services; Mergers & acquisitions

Implementing a Super majority clause, which requires 70-80% of stockholders' approval to pass the resolution of takeover. This makes it more difficult for the potential acquirer to convince the ...

Staggered Board

Business services; Mergers & acquisitions

This defense strategy is often complemented with the poison pill technique. This technique, again aims at buying more time and increasing the difficulty for the predator. Staggered Board requires you ...

Litigation

Business services; Mergers & acquisitions

For a short time, you can entangle the bidder in a legal suit, by challenging the validity of the takeover; thus, helping the management of the target company to buy time for other defense ...

Golden Parachute

Business services; Mergers & acquisitions

This method discourages the takeover by offering high lucrative compensations to the top management in the event of them losing their jobs in case of a takeover.