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The process by which one company purchases most or all of another company's shares to gain control. Significance: It allows the acquirer to grow in size, reduce competition, or enter new markets.

The combination of two or more companies into a single legal entity. Significance: It allows companies to combine resources, eliminate competition, or expand their operations.

A comprehensive appraisal of a business undertaken by a prospective buyer. Significance: It ensures that the buyer is aware of all aspects of the business, including any potential risks.

The potential financial benefit achieved through the combining of companies. Significance: Synergies can result in cost savings or additional revenue that would not be realized if the companies remained separate.

An acquisition where the target company does not want to be purchased. Significance: It can lead to dramatic changes in company leadership and business direction.

An offer to purchase some or all of shareholders' shares in a corporation. Significance: It is a common method to execute a hostile takeover.

Acquisition of a company using a significant amount of borrowed money. Significance: It allows investors to make large acquisitions without committing a lot of capital.

A friendly investor or company that rescues a target company from a hostile takeover. Significance: It provides an alternative for the target company that is more agreeable to its board.

A defense tactic used by a target company to prevent a hostile takeover. Significance: It makes the target company less attractive to the acquirer through various mechanisms.

A contract provision giving executives substantial benefits if employment is terminated. Significance: It can protect executives in the event of a takeover.

A penalty set in an acquisition agreement to be paid if the acquirer backs out. Significance: It compensates for the potential loss and expenditure of the target if the deal collapses.

An acquisition where specific assets of a company are purchased rather than the company itself. Significance: It avoids taking on the target company's liabilities.

A type of acquisition where the acquirer buys the target company's stock from the shareholders. Significance: It results in the acquirer assuming ownership and control, including liabilities.

The additional amount an acquirer pays over the current market price of the target company's shares. Significance: It is meant to incentivize shareholders to sell their shares in a takeover.

An acquisition that is agreed upon by both the acquirer and the target company. Significance: It tends to be smoother and quicker as both parties are cooperative.

The process of converting a publicly traded company into a privately held one. Significance: It removes the need for public reporting and can give more flexibility in management.

Investment funds that buy and restructure companies that are not publicly listed. Significance: They play a significant role in M&As, particularly in larger leveraged buyouts.

The sale or liquidation of a company's assets or subsidiary. Significance: It is a way to restructure and focus on core business or reduce debt.

Creating a new independent company by separating a subsidiary or division. Significance: Allows each business to focus on its specific operations and may increase shareholder value.

A merger between companies that operate in the same industry. Significance: It can create a larger market share and economies of scale but may raise antitrust concerns.

A merger between companies in the same industry but at different stages of production. Significance: It provides supply chain control and reduces costs.

A union of companies that are involved in completely unrelated business activities. Significance: Diversifies business interests and reduces overall business risk.

A public proposal to buy a significant number of shares or all of a company. Significance: Initiates the potential for a change in corporate control.

The sale of a company's subsidiary or division as a new, separate public company. Significance: Raises capital and allows the new entity to focus on its specific market.

A transaction where a private company acquires a publicly traded company to bypass the lengthy and complex process of going public. Significance: It provides the private company with immediate public status.

A form of acquisition where a company's management team purchases the assets and operations. Significance: Enables managers to focus on long-term growth without the pressures of public markets.

The rate at which investment offers are presented to funding institutions. Significance: Indicates the health of the investment space; a higher deal flow is often a positive sign.

A company that acquires another company for the synergies and potential for combined growth. Significance: Aims for long-term operational synergy rather than short-term financial gains.

An investor or firm that buys a company primarily for financial return. Significance: Often employs leveraged buyouts and looks for short-term profit through restructuring and resale.

Mergers or acquisitions between companies in different countries. Significance: Allows for international expansion and diversification, but can come with regulatory and cultural integration challenges.

The anticipated benefits that occur when two firms combine forces through a merger or acquisition. Significance: They are a critical factor in determining the value of an M&A deal.

A document outlining the agreement between two or more parties before the agreement is finalized. Significance: It's a precursor to a contract and advocates the seriousness of the deal.

A type of acquisition where a larger company purchases a smaller company to add to its existing operations. Significance: Enhances current business operations and expands market reach.

An investment strategy that capitalizes on the price discrepancy between the current market price of a target firm's stock and the ultimate purchase price of the stock. Significance: It allows investors to profit from M&A deals.

An acquisition offer made with a combination of cash and the acquirer's stock. Significance: Provides flexibility to the seller and preserves cash for the buyer.