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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

Equity

Banking; Mergers & acquisitions

The ownership interests in a company,  generally in the form of stock or stock options.

Exclusivity

Banking; Mergers & acquisitions

A provision in an agreement, such as a Term Sheet or Letter of Intent, in which the prospective seller agrees not to consider alternative offers or negotiate a separate deal from other suitors for a ...

Effective date

Banking; Mergers & acquisitions

The date a contract (e.g., a stock or asset purchase agreement) is signed and becomes legally binding. Unless the contract is signed and closed the same day, there may be a period of time between the ...

Earn-out

Banking; Mergers & acquisitions

A term in a stock purchase agreement or asset purchase agreement which entitles  the seller to an increase in the purchase price if certain financial milestones are achieved.

Due diligence

Banking; Mergers & acquisitions

A process undertaken by potential Acquirers to analyse and assess the desirability, value, and potential of a business which they may acquire.

Covenant not to compete

Banking; Mergers & acquisitions

An agreement often signed by an employee or a selling shareholder whereby they agree not to work for competitor companies or form a new competitor business within a specified period after termination ...

Closing

Banking; Mergers & acquisitions

The event when the required legal agreements (e.g., stock purchase agreement, asset purchase agreement or merger agreement) are implemented between the parties and shares or assets are exchanged for ...

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