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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.
Industry: Banking; Business services
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Mergers & acquisitions
Statutory consolidation
Banking; Mergers & acquisitions
Involvestwo ormorecompanies joining to form a new company.
Stock purchases
Banking; Mergers & acquisitions
The exchange of the target's stock for cash, debt, or the stock of the acquiring company.
Bridge financing
Banking; Mergers & acquisitions
Temporary unsecured short-term loans provided by investment banks to pay all or a portion of the purchase price and meet immediate working capital requirements until permanent or long-term financing ...
Capitalization multiple
Banking; Mergers & acquisitions
The multiple estimated by dividing 1 by the estimated discount or capitalization rate that can be used to estimate the value of a business by multiplying it by an indicator of value such as free cash ...
Buyout
Banking; Mergers & acquisitions
Change in controlling interest in a corporation. Capital asset pricing model A framework for measuring the relationship between expected risk and return.
Capitalization rate
Banking; Mergers & acquisitions
The discount rate used by practitioners if the cash flows of the firm are not expected to grow or are expected to grow at a constant rate indefinitely.
Breakup fee
Banking; Mergers & acquisitions
A fee that will be paid to the potential acquirer if the target firm decides to accept an alternative bid. Also called a termination fee.