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

Classified board election

Banking; Mergers & acquisitions

An antitakeover defence involving the separation of a firm's board into several classes, only one of which is up for election at any one point in time. Also called a staggered board.

Collar agreement

Banking; Mergers & acquisitions

An arrangement providing for certain changes in the share exchange ratio contingent on the level of the acquirer's share price around the effective date of the merger.

Common-size financial statements

Banking; Mergers & acquisitions

Financial statements calculated by taking each line item as a percentage of revenue.

Certificate of incorporation

Banking; Mergers & acquisitions

A document received from the state once the articles of incorporation have been approved.

Composition

Banking; Mergers & acquisitions

An agreement in which creditors consent to settling for less than the full amount they are owed.

Closing conditions

Banking; Mergers & acquisitions

Stipulations that must be satisfied before closing can take place.

Extension

Banking; Mergers & acquisitions

Creditor agreement to lengthen the period during which the debtor firm can repay its debt and, in some cases, to temporarily suspend both interest and principal repayments.