20 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
Divisional organisation
Banking; Mergers & acquisitions
An organisational structure in which groups of products are combined into independent divisions or "strategic business units."
Discount rate
Banking; Mergers & acquisitions
The opportunity cost associated with investment in the firm used to convert the projected cash flows to present values.
Discounted cash flow
Banking; Mergers & acquisitions
The conversion of future to current cash flows by applying an appropriate discount rate.
Divestiture
Banking; Mergers & acquisitions
The sale of all or substantially all of a company or product line to another party for cash or securities.
Destroyers of value
Banking; Mergers & acquisitions
Factors that can reduce the future cash flow of the combined companies.
Diversifiable risk
Banking; Mergers & acquisitions
The risk specific to an individual firm, such as strikes and lawsuits.
Diversification
Banking; Mergers & acquisitions
A strategy of buying firms outside of the company's primary line of business.
