Acquiree
What is an Acquiree? An acquiree is a company, business, or corporation that makes for a viable candidate for a merger or acquisition. The acquirer is the company purchasing another company. The process of acquiring the target company can follow different scenarios, depending on the attitude of the acquiree’s management. Often, the owners and shareholders...
Flip-Over Strategy
What is the Flip-over Strategy? The flip-over strategy is a poison pill strategy used by companies to help protect themselves from a hostile takeover. With the flip-over strategy, shareholders of the target company have the opportunity to purchase shares of the acquiring company – the company looking to engage in a hostile takeover – at...
Toehold Position/Purchase
What is a Toehold Position/Purchase? A toehold position is an acquisition or investment strategy where an investor targets a particular company but buys less than 5% of the company’s stock. This “toehold” position is sufficient to enable them to exert pressure on the company, whether aiming to ultimately acquire it or merely to raise its...
Mixed Offering
What is a Mixed Offering? In merger and acquisition transactions, a mixed offering (also known as a mixed payment) is a form of payment in which an acquirer uses a combination of cash and non-cash payment methods (e.g., equity) to fund the purchase of the target company. For example, an acquiring company employs a mixed...
Defense Mechanism
What is a Defense Mechanism? In M&A transactions, a defense mechanism (also known as a defense strategy) is any set of procedures that are employed by a target company to prevent a hostile takeover. A hostile takeover is a type of acquisition in which a bidder takes over a target company without the consent, and...
