Pre-Offer Defense Mechanism
What is a Pre-offer Defense Mechanism? Pre-offer defense mechanism is a general term for a broad group of defensive strategies in M&A transactions. Essentially, the pre-offer defense mechanism is a preemptive strategy undertaken by a target company to protect itself from a possible bidding offer from a would-be acquirer in a hostile takeover. Objectives of Pre-offer...
Post-Offer Defense Mechanism
What is a Post-offer Defense Mechanism? “Post-offer defense mechanism” is a term used to label a broad group of strategies that can be employed by the target company of a hostile takeover. Unlike pre-offer defense strategies that are more concerned with preventative steps, post-offer defenses are executed when there is a real threat of a...
Killer Bees
What are Killer Bees? In the mergers and acquisitions landscape, “killer bees” refers to companies or individuals that assist a company in avoiding a hostile takeover. They are similar to white knights, but utilize a much wider range of takeover defense strategies. Killer bees derive their name partially from the fact that they typically act...
Show Stopper
What is a Show Stopper? As is true in the entertainment industry, a show stopper in the business/financial world is an event or situation that causes production or progress to cease. Forward movement, success, or completion of a task, assignment, or project are hindered because of a show-stopping event or circumstance. Show Stoppers in Hostile...
Friendly Takeovers vs Hostile Takeovers
What are Friendly Takeovers vs Hostile Takeovers? In mergers and acquisitions, there is often confusion between friendly takeovers vs hostile takeovers. How can one differentiate between the two? The difference between a friendly and hostile takeover is solely in the manner in which the company is taken over. In a friendly takeover, the target company’s...
