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

lobster trap

Banking; Mergers & acquisitions

Tactic to deter a hostile takeover, in which a company issues a charter that only allows individuals with less than 10% ownership of convertible securities to transfer those to voting stock. The ...

scorched-earth defense

Banking; Mergers & acquisitions

Tactic to deter a hostile takeover, in which a company destroys all or some valuable assets (crown-jewels), to seem less attractive to the buyer. This tactic may however develop into a more drastic ...

yellow knight

Banking; Mergers & acquisitions

A company that initially was attempting or considering a hostile takeover of a target company but then instead proposes a merger between the two. The proposing company might do so due to several ...

fat man strategy

Banking; Mergers & acquisitions

Tactic to deter a hostile takeover, in which a company purchases assets or another company in order to make itself unattractive. A targeted company pursuing the fat man strategy might also choose to ...

total consideration

Banking; Mergers & acquisitions

A commonly used term in legal documents to reflect the different types of remuneration received by target company shareholders.

total purchase price

Banking; Mergers & acquisitions

The total consideration plus the market value of the target firm’s debt assumed by the acquiring company. Also referred to as enterprise value.

tracking stocks

Banking; Mergers & acquisitions

Separate classes of common stock of the parent corporation whose dividend payouts depend on the financial performance of a specific subsidiary. Also called target or letter stocks.