The Godfather offer is an irrefutable takeover offer made by the buyer of the target company.
Typically, the offer is offered at an extremely high premium over the company’s prevailing share price, making it difficult for management to refuse.
If the offer is rejected, shareholders may initiate legal action or other forms of revolt against the board of directors of the target company for failing to fulfill their fiduciary duties.
Downward round refers to a private company offering additional shares to be sold at a price lower than that at which they were sold in the previous funding round.
Acquisition premium is the difference between the estimated real value of a company and the actual price paid for its acquisition in an M&A transaction.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.
Back integration is when a company expands its role to perform tasks that were previously performed by enterprises located higher up in the supply chain.
Share capital is the number of ordinary and preferred shares that the company has the right to issue and which are accounted for on the balance sheet as part of share capital.
As a result of the spin-off, the parent company sells a portion of its shares in its subsidiary to the public through an initial public offering (IPO), effectively turning the subsidiary into a stand-alone company.