5 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
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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.
