Strategic Buyer
What is a Strategic Buyer? A strategic buyer is a buyer who is already operating in the same industry as the company he’s trying to acquire. Often, strategic buyers are competitors, suppliers, or clients of the acquisition target. The strategic buyer’s main goal is to find a company whose products and services align with the...
Special Purpose Acquisition Company (SPAC)
What is a Special Purpose Acquisition Company (SPAC)? A special purpose acquisition company (SPAC) is a corporation formed for the sole purpose of raising investment capital through an initial public offering (IPO). Such a business structure allows investors to contribute money towards a fund, which is then used to acquire one or more unspecified businesses...
Forward Integration
What is Forward Integration? Forward integration is a form of vertical integration in which a company moves further in the direction of controlling the distribution of its products or services. Essentially, a company undertakes forward integration by acquiring or merging with business entities that were its customers, while still maintaining control over its initial business....
Cornering the Market
What Does Cornering the Market Mean? Cornering the market is obtaining and holding/owning enough stocks, assets, or commodities to effectively control the market price of said items. It involves acquiring the biggest market share without becoming a monopoly. How It Works There are a number of ways to attempt market cornering. The most straightforward approach...
Novation
What is Novation? Novation refers to the process of substituting the original contract with a replacement contract, where the original party agrees to forgo any rights afforded to them by the original contract. In most novation agreements, the parties agree to extinguish the original contract and replace it with an entirely new contract. One of...
