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

Add a new term

Contributors in Mergers & acquisitions

Become a Contributors

Mergers & acquisitions

Holdout problem

Banking; Mergers & acquisitions

The tendency for smaller creditors to hold up the agreement among creditors during reorganisation unless they receive special treatment.

Impaired asset

Banking; Mergers & acquisitions

As defined by FASB, a long-term asset whose fair value falls below its book or carrying value.

Holding company

Banking; Mergers & acquisitions

A legal entity often having a controlling interest in one or more companies.

Implementation strategy

Banking; Mergers & acquisitions

The way in which the firm chooses to execute the business strategy.

Horizontal merger

Banking; Mergers & acquisitions

A combination of two firms within the same industry.

Reverse breakup fee

Banking; Mergers & acquisitions

Fees paid to a target firm in the event the bidder wants to withdraw from a signed contract.

Purchasing power parity theory

Banking; Mergers & acquisitions

The theory stating that one currency will appreciate (depreciate) with respect to another currency according to the expected relative rates of inflation between the two countries.