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

Insider trading

Banking; Mergers & acquisitions

Individuals buying or selling securities based on knowledge not available to the general public.

Junk bonds

Banking; Mergers & acquisitions

High-yield bonds either rated by the credit-rating agencies as below investment grade or not rated at all.

Involuntary bankruptcy

Banking; Mergers & acquisitions

A situation in which creditors force a debtor firm into bankruptcy.

Pro forma financial statements

Banking; Mergers & acquisitions

A form of accounting that presents financial statements in a way that purports to more accurately describe a firm's current or projected performance.

Purchase accounting

Banking; Mergers & acquisitions

A form of accounting for financial reporting purposes in which the acquired assets and assumed liabilities are revalued to their fair market value on the date of acquisition and recorded on the books ...

Purchase premium

Banking; Mergers & acquisitions

The excess of the offer price over the target's current share price, which reflects both the value of expected synergies and the amount necessary to obtain control.

Private placements

Banking; Mergers & acquisitions

The sale of securities to institutional investors, such as pension funds and insurance companies, for investment rather than for resale. Such securities do not have to be registered with the SEC.