A forward triangular merger is a type of merger in which a target company is bought by a purchasing company, and the target company’s shareholders receive shares in the purchasing company. The shareholders of the target company end up owning a stake in the purchasing company, but the purchasing company does not end up owning … Read more
A de-merger is the process of separating a company into two or more independent companies. This can be done through a variety of methods, such as spinning off a subsidiary, carving out a business unit, or selling off assets. De-mergers can be motivated by a variety of reasons, such as increasing shareholder value, unlocking value … Read more
. Bear Hug: definition of business. What does the term bear hug mean in finance? The term “bear hug” is often used in the context of mergers and acquisitions, and refers to a hostile takeover attempt in which the acquirer offers a very high price for the target company’s shares in an effort to pressure … Read more
A management buy-in (MBI) is a type of merger or acquisition in which a group of managers from another company purchase a controlling interest in the company they will be managing. The managers who are part of the MBI team typically have expertise and experience in the same industry as the company they are acquiring. … Read more
A takeover bid is an offer made by one company to acquire another company. The offer is usually made in cash, but it can also be made in the form of stock or other securities. The offer is usually made public, but it can also be made privately. If the offer is accepted by the … Read more
Flotation costs are the costs associated with issuing new securities. These costs include underwriting fees, legal fees, and accounting fees. Flotation costs can be a significant expense when a company is issuing new securities, and can have a significant impact on the overall cost of financing a transaction. Are flotation costs tax deductible? Yes, flotation … Read more
Carve-out: Definition and Business Strategy Meaning and example of Carve-out What is carve-out in healthcare? Carve-out in healthcare refers to the process of separating a particular business unit or line of business from a larger organization. This can be done for a variety of reasons, such as to make the organization more efficient, to focus … Read more
Leveraged Buyout (BYO) Definition: What It Is and How It Works. Is an LBO a merger? An LBO is a type of merger, but not all mergers are LBOs. In an LBO, a private equity firm buys a majority stake in a company using a combination of debt and equity. The firm then restructures the … Read more
A backflip takeover is a type of merger or acquisition in which the target company is acquired by the parent company of its principal competitor. This type of deal is often motivated by the desire to eliminate a competitor, gain market share, or achieve other strategic objectives. Backflip takeovers can be hostile or friendly, depending … Read more
How It Works, With Example. Tender in Finance: How It Works, With Example. What is the difference between a merger and a tender offer? A merger occurs when two companies combine to form a new company, while a tender offer is when one company makes an offer to buy another company. In a merger, both … Read more
