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

Capital gains

Banking; Mergers & acquisitions

The difference between an asset's purchase price and selling price, when the selling price is greater. Long-term capital gains (on assets held for a year or longer) are taxed at a lower rate than ...

C corporation

Banking; Mergers & acquisitions

A corporation which is taxed as an entity that is separate from its shareholders in accordance with Subchapter C of the Internal Revenue Code.

Buy-sell agreement

Banking; Mergers & acquisitions

An agreement among the shareholders of a company that governs how the owners of a business can sell their interests in the business, to whom, when, and at what price. The agreement includes ...

Business broker

Banking; Mergers & acquisitions

An intermediary between sellers and buyers of small businesses who typically earn a commission upon the closing of a sale of the business.

Break-up fee

Banking; Mergers & acquisitions

A fee paid to a prospective Acquirer if a contemplated transaction is not consummated for reasons specified in the purchase agreement. Also called a "Termination Fee. "

Book value

Banking; Mergers & acquisitions

A determination of a company's balance sheet value by adding all current and fixed assets and then deducting all debts, other liabilities and the liquidation price of any preferred issues. Book value ...

Basket

Banking; Mergers & acquisitions

The minimum threshold which must be exceeded before an Acquirer is entitled to receive and Indemnification payment for losses caused by a Seller's breach of Representations & Warranties.