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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

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.

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