Target Firm
Investment Dictionary:
Target Firm
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Target firm
Definition: [crh] A firm that is the object of a takeover by another firm.
Target firm
A firm that is the object of a takeover by another firm.
Target investment mix ...
Target Firm
A company which is the subject of a merger or acquisition attempt. A takeover attempt can take on many different flavors, depending on the attitude of the target firm toward the acquirer.
Merger when the target firm's management and board of directors is in favor of the takeover.
Full disclosure ...
Measure taken by a target firm to avoid acquisition;
for example, the right for existing shareholders to buy additional
shares at an attractive price if a bidder acquires a large holding.
put option ...
raider An individual or entity attempting to acquire enough equity in a target firm... raincheck A seller's commitment to sell an out-of-stock item at the advertised price as soon as it becomes available.
Related: Greenmail Target firm A firm that is the object of a takeover by another firm. Target payout ratio A firm's long-run dividend-to-earnings ratio.
Friendly takeover Merger when the target firm's management and board of directors is in favor of the takeover. Antithesis of hostile takeover. Front-end load The fee applied to an investment at the time of initial purchase, e.g.
When one corporation announces an intention to acquire another, it generally offers to buy the target firm's stock at a premium over the current market price.
Poison pills are rights freely distributed to target-company shareholders that give the shareholders the 'right' to purchase shares in the target firm (or the bidding firm in case of a merger) at significant discounts in price when a 'triggering ...
Golden parachute Compensation paid to top-level management by a target firm if a takeover occurs. Good delivery A delivery in which everything - endorsement, any necessary attached legal papers, etc. - is in order.
The target firm's assets are commonly used to secure the acquirer's loan. However, they may also use their own assets as collateral.
When a firm or investor buys up a substantial amount of shares in a company (making it a target firm). This is done by a stock broker, acting on behalf of a company, first thing in the morning when the stock markets open.
Dawn Raid - The action of a firm or investor buying a substantial amount of shares in a company (making it a target firm) first thing in the morning when the stock markets open. This is done by a stock broker acting on behalf of a company.
These can be a voluntary marriage of equals; a voluntary takeover of one firm by another; or a hostile takeover, in which the management of the target firm resists the advances of the buyer but is eventually forced to accept a deal by its current ...
In the context of takeovers, the price at which an acquirer aims to buy a target firm.
In the context of options, the price of the underlying security at which an option will become in the money.
A hostile takeover occurs when the managing board of the target firm rejects the takeover bid, but, the acquiring firm pursues the takeover anyway.
An internal audit of a target firm by an acquiring firm. Offers are often made contingent upon resolution of the due diligence process.
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of technological developments and innovation, often with a lean and entrepreneurial organisational structure that might not be maintained in larger companies. This approach could, for example, result in technology transfer from the target firm to the ...
Greenmail In a typical greenmail, the acquiring firm has already purchased a number of shares of the target firm's stock. Management of the target company offers to buy back the stock, at a price higher than the market.
A friendly potential acquirer sought out by a target firm that is threatened by a less welcome suitor.
White squire
Often used in risk arbitrage. White knight who buys less than a majority interest.
The public tender offer is a means of acquiring a target firm against the wishes of management.
White knight
A friendly potential acquirer sought out by a target firm that is threatened by a less welcome suitor.
See also: Balance Sheet, Collateral, Due Diligence - DD, Equity Financing, Expansion, Hybrid Security, Initial Public Offering - IPO, Subordinated Debt, Target Firm, Venture Capital
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A corporate action where an acquiring company makes a bid for the outstanding shares of a target company. A 'hostile' takeover is one that is strongly resisted by the target firm, ...
Less otherwise stated in a company's memorandum, obtaining 50% or more of the shares of the target firms is equivalent to having received shareholder approval. Tender offers can be friendly or hostile.
With the knowledge provided by the embedded option technique, the CFO could assess what kind of policy measures applied to the pension fund would result in acceptable risks when a target firm-including the firm's obligation to the pension fund-is ...
 See also: Expense, Values, Banks, Bills, Saving
  
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