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

Friendly takeover

Banking; Mergers & acquisitions

Acquisition when the target's board and management are receptive to the idea and recommend shareholder approval.

Free cash flow

Banking; Mergers & acquisitions

The difference between cash inflows and cash outflows, which may be positive, negative, or zero.

Going concern value

Banking; Mergers & acquisitions

The value of a company defined as the firm's value in excess of the sum of the value of its parts.

General partner

Banking; Mergers & acquisitions

An individual responsible for the daily operations of a limited partnership.

Going private

Banking; Mergers & acquisitions

The purchase of the publicly traded shares of a firm by a group of investors.

Market power hypothesis

Banking; Mergers & acquisitions

A theory that firms merge to gain greater control over pricing. Maximum offer price The sum of the minimum price plus the present value of net synergy.