23 Terms
Home > Industry/Domain > Banking; Business services > 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
Add a new termContributors in Mergers & acquisitions
Mergers & acquisitions
Equity
Banking; Mergers & acquisitions
The ownership interests in a company, generally in the form of stock or stock options.
Exclusivity
Banking; Mergers & acquisitions
A provision in an agreement, such as a Term Sheet or Letter of Intent, in which the prospective seller agrees not to consider alternative offers or negotiate a separate deal from other suitors for a ...
Effective date
Banking; Mergers & acquisitions
The date a contract (e.g., a stock or asset purchase agreement) is signed and becomes legally binding. Unless the contract is signed and closed the same day, there may be a period of time between the ...
Earn-out
Banking; Mergers & acquisitions
A term in a stock purchase agreement or asset purchase agreement which entitles the seller to an increase in the purchase price if certain financial milestones are achieved.
Due diligence
Banking; Mergers & acquisitions
A process undertaken by potential Acquirers to analyse and assess the desirability, value, and potential of a business which they may acquire.
Covenant not to compete
Banking; Mergers & acquisitions
An agreement often signed by an employee or a selling shareholder whereby they agree not to work for competitor companies or form a new competitor business within a specified period after termination ...
Closing
Banking; Mergers & acquisitions
The event when the required legal agreements (e.g., stock purchase agreement, asset purchase agreement or merger agreement) are implemented between the parties and shares or assets are exchanged for ...
