9 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
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Mergers & acquisitions
Purchase price adjustment
Banking; Mergers & acquisitions
A contractual provision designed to reflect the change in value of an asset between a specific date (e.g., the effective date of an asset or stock purchase agreement) and Closing.
Promissory note
Banking; Mergers & acquisitions
A promissory note is a form of debt that a maker/debtor issues to raise money or pay as consideration in an acquisition.
Non-disclosure agreement
Banking; Mergers & acquisitions
An agreement to protect confidential information being disclosed to a prospective investor or acquirer. Also called an "NDA" or "Confidentiality Agreement".
Merger
Banking; Mergers & acquisitions
The legal combination of two or more corporations where one corporation goes out of existence and one corporation remains as the surviving entity.
Cash-for-assets
Banking; Mergers & acquisitions
An acquisition in which the acquirer pays cash for the seller's assets and may choose to accept some or all of the seller's liabilities.
Cash-out statutory merger
Banking; Mergers & acquisitions
A merger in which the shareholders of the selling firm receive cash or some form on nonvoting investment (e.g., debt, or nonvoting preferred or common stock) for their shares.
Closing
Banking; Mergers & acquisitions
The phase of the acquisition process in which ownership is transferred from the target to the acquiring firm in exchange for some agreed-on consideration following the receipt of all necessary ...
