What is an Acquirer? An acquirer is a registered company that purchases a portion of, or all the rights to, another company. The acquiring company takes over the management of another company by obtaining a majority stake in the target, effectively giving it control of the company through stock voting rights. Alternatively, the acquirer may...
What are Sources of Finance? Companies always seek sources of funding to grow their business. Funding, also called financing, represents an act of contributing resources to finance a program, project, or need. Funding can be initiated for either short-term or long-term purposes. The different sources of funding include: Retained earnings Debt capital Equity capital Other...
What is Shareholder Base? Shareholder base refers to the total number of shareholders in a company. In other words, it is a base of owners (investors) of a company that holds a certain number of stock (shares) in the business distributed proportionally, depending on the amount of investment made. Shareholders are diverse, which means that...
What is Timing of Synergies? When a company is looking to enter into a merger & acquisition deal, the timing of synergies is of extreme importance. It is because M&A deals are essentially time-sensitive because of the volatile nature of financial markets. The market constantly goes through periods of expansion and recession, characterized by economic...
What is Market Share? Market share refers to the portion or percentage of a market earned by a company or an organization. In other words, a company’s market share is its total sales in relation to the overall industry sales of the industry in which it operates. Say, for example, the purchasing activity of consumers...