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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.

Contributors in Mergers & acquisitions

Mergers & acquisitions

Economies of scope

Banking; Mergers & acquisitions

The use of a specific set of skills or an asset currently used to produce a specific product to produce related products.

Earnouts

Banking; Mergers & acquisitions

Payments to the seller based on the acquired business achieving certain profit or revenue targets.

Economies of scale

Banking; Mergers & acquisitions

The spreading of fixed costs over increasing production levels.

Economic value

Banking; Mergers & acquisitions

The present value of a firm's projected cash flows.

Hostile tender offer

Banking; Mergers & acquisitions

A tender offer that is unwanted by the target's board.

Hostile takeover

Banking; Mergers & acquisitions

Acquisition when the initial bid was unsolicited, the target was not seeking a merger at the time of the approach, the approach was contested by the target's management, and control changed hands.

Hubris

Banking; Mergers & acquisitions

An explanation for takeovers that attributes a tendency to overpay to excessive optimism about the value of a deal's potential synergy or excessive confidence in management's ability to manage the ...

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