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

Financial restructuring

Banking; Mergers & acquisitions

Actions by the firm to change its total debt and equity structure. Financial sponsor An investor group providing equity financing in leveraged buyout transactions.

Fairness opinion letter

Banking; Mergers & acquisitions

A written and signed third-party assertion certifying the appropriateness of the price of a proposed deal involving a tender offer, merger, asset sale, or leveraged buyout.

Financial synergy

Banking; Mergers & acquisitions

The reduction in the cost of capital as a result of more stable cash flows, financial economies of scale, or a better matching of investment opportunities with available funds.

Fair market value

Banking; Mergers & acquisitions

The cash or cash-equivalent price a willing buyer would propose and a willing seller would accept for a business if both parties had access to all relevant information.

Financial buyer

Banking; Mergers & acquisitions

Acquirers that focus on relatively short to intermediate financial returns and typically use large amounts of debt to finance their acquisitions.

Fair value

Banking; Mergers & acquisitions

An estimate of the value of an asset when no strong market exists for a business or it is not possible to identify the value of substantially similar firms.

Net operating loss carryforward and carrybacks

Banking; Mergers & acquisitions

Provisions in the tax laws allowing firms to use accumulated net tax losses to offset income earned over a specified number of future years or recover taxes paid during a limited number of prior ...