Corporate Strategies

Pac-Man Defense
In corporate mergers and acquisitions, the Pac-Man Defense refers to a defensive strategy where the target company aims to counter the hostile takeover attempt by making a bid to acquire the aggressor.
Scorched-Earth Defense
A corporate strategy used to avoid a hostile takeover by disposing of valuable assets, often resulting in a significant decline in the company's value and earnings power.

Accounting Terms Lexicon

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