Subsidiary Merger
What is a Subsidiary Merger? A subsidiary merger is a type of merger that occurs when the acquiring company uses its subsidiary company to acquire a target company. The acquirer may create a subsidiary company or use one of its existing subsidiary companies to execute the merger and acquisition transaction. In a subsidiary merger, the...
Due Diligence
What is Due Diligence? Due diligence is a process of verifying, investigating, or auditing a potential deal or investment opportunity to confirm all relevant facts and financial information, and to verify anything else that arises during an M&A or investment process. Due diligence is completed before a deal closes to provide the buyer with an assurance of what they’re...
Change of Control
What is Change of Control? In finance, a Change of Control occurs when there is a material change in the ownership of a company. The exact criteria that determine such a change can vary and are defined by law and through contractual agreements. A change of control clause is often included in creditor pacts and...
Yellow Knight
What is a Yellow Knight? A Yellow Knight is a company that attempts to mount a hostile takeover of another company but ends up instead discussing the idea of a merger with the target company. The change in strategy may occur when the targeted company resists the hostile takeover and the acquirer is forced to be...
Black Knight
What is a Black Knight? In corporate finance, a company that is offering or executing a hostile takeover of the target company is termed a black knight. A hostile takeover is an acquisition attempt by a company or raider that the target company resists. For example, Company A is a publicly-traded company that wants to...
