An acquisition occurs when one company takes over controlling interest in another company. This strategy is often employed to achieve specific business objectives such as expanding market share, gaining new technologies, or reducing competition.
Refers to a start-up company, typically in the IT field, that is designed to be sold to an acquirer at the earliest opportunity rather than built up into an enduring concern.
A Buy-In Management Buy-Out (BIMBO) is a strategic acquisition where existing management, along with external investors, purchase a company, offering a blend of insider expertise and additional capital with more managerial control.
A buy-out, also known as a buyout, refers to the purchase of a substantial holding in a company, often by its existing managers or employees. This enables the acquiring party to gain greater control or full ownership of the company.
A buyout involves purchasing at least a controlling percentage of a company's stock to take over its assets and operations. It can be accomplished through negotiation or a tender offer.
Capital costs refer to the expenses incurred to acquire, upgrade, and maintain physical assets such as properties, industrial buildings, or equipment. Often, these costs are major, one-time expenses that have long-term benefits.
An earn-out agreement is a contingent contract used in M&A transactions where the purchaser pays an initial amount at acquisition and agrees to pay additional future sums contingent on the target company meeting specified performance targets.
A friendly takeover occurs when the management and board of directors of the target company are in agreement with the acquisition and recommend that shareholders approve the offer.
A leveraged buyout (LBO) is a financial transaction where a company is acquired primarily using borrowed funds, with the target company's assets often used as collateral for the loans.
A Leveraged Buyout (LBO) involves the acquisition of a company utilizing a significant amount of borrowed money. Typically, the assets of the acquired company serve as collateral, and the intention is to use the company's cash flow to repay the obtained loans.
Management Buy-In (MBI) is the acquisition of a company by an external team of managers, often financed by a venture-capital organization. It involves bringing in new management to revitalize a target company and optimize its operations.
A Management Buy-Out (MBO) is a form of acquisition where a company's managers purchase the business, gaining control and equity in the company. This often occurs as an alternative to closure or spin-off by the parent company.
Pre-acquisition profits refer to retained earnings accumulated by a company before it is acquired by another entity. These profits are not to be distributed to the shareholders of the acquiring company as dividends, as they represent a recovery of the cost of investment rather than income.
Procurement is the acquisition of goods, services, or works from an external source, typically through a bidding process. It involves the process of finding, agreeing on terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process.
An acquisition that is bought, as contrasted with an exchange, gift, or inheritance. Generally, the purchase price serves as the original cost basis.
A Reverse Takeover (RTO) involves a private company purchasing control of a publicly-traded company, often as a cost-effective means to obtain a stock exchange listing.
A takeover represents a change in the controlling interest of a corporation. This can occur through friendly acquisition and merger, or via an unfriendly bid that might be contested by the target company's management employing defensive strategies known as shark repellent techniques.
