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A takeover occurs when the acquiring company successfully completes an application for control or acquisition of the target company. Acquisitions are usually initiated by a larger company seeking to take over a smaller one. Takeovers can be desirable and friendly, or they can be undesirable and hostile. Companies may initiate acquisitions because they find value in the target company, want to initiate change, or want to eliminate competition. Upstream Guarantee
September 25, 2022 An upstream guarantee is when a parent company’s debt or obligation is secured by one or more of its subsidiaries. Acquisition
September 25, 2022 An acquisition is a business combination where one company buys most or all of the shares of another company. Acquisition Premium
September 25, 2022 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. Activity-Based Management (ABM)
September 25, 2022 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. Affiliated Companies
September 25, 2022 Two companies are affiliated if one is a minority shareholder of the other. Agency Problem
September 25, 2022 An agency problem is a conflict of interest inherent in any relationship where one party is expected to act in the interests of the other. Amalgamation
September 25, 2022 A merger is the amalgamation of two or more companies into an entirely new entity by combining the assets and liabilities of both companies into one. Appropriation
September 25, 2022 Appropriation is the act of allocating money for a particular purpose. Asset Financing
September 25, 2022 Asset financing allows a company to obtain a loan by pledging its balance sheet assets. Asset-Liability Committee (ALCO)
September 25, 2022 Asset and Liability Management Committees (ALMCs) are responsible for overseeing the asset and liability management of a company or bank. Audit Committee
September 25, 2022 The Audit Committee consists of members of the company’s board of directors and oversees its financial reporting and reporting. BCG Growth-Share Matrix
September 25, 2022 The BCG Growth Share Matrix is an internal tool used by management to assess the current state of the value of a firm’s divisions or product lines. Backward Integration
September 25, 2022 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. Bear Hug
September 25, 2022 A bear hug is an informal offer to acquire a company at a premium to the market price of its shares, made public without the consent of its board. Buy-In Management Buyout (BIMBO)
September 25, 2022 Management buyout (BIMBO) occurs when an external management team joins the company (buy-in) and also buys out the existing management team. Buyout
September 25, 2022 A buyout is the acquisition of a controlling interest in a company and is used as a synonym for the term “acquisition”. Capital Leases
September 25, 2022 A capital lease is a contract that gives the lessee the right to temporarily use an asset. Capital Markets
September 25, 2022 Capital markets refer to places where funds are exchanged between providers and those seeking capital for their own use. Capital Project
September 25, 2022 A capital project is often a costly, long-term project to expand, maintain, or improve a significant portion of a property. Capital Stock
September 25, 2022 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. Capital Structure
September 25, 2022 The capital structure is how a company finances its overall operations and growth. Carve-Out
September 25, 2022 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. Clawback
September 25, 2022 Clawback is a contractual clause that requires the employee to return money already paid by the employer, sometimes with a penalty. Contingent Value Rights (CVR)
September 25, 2022 CVR is the rights granted by the acquirer to the shareholders of the target company. Corporate Charter
September 25, 2022 A corporation charter is a document filed with a state secretary or registrar to establish a company as a corporation.