Merger
A type of acquisition in which two or more business entities are combined into one
Acquisition
The purchase of one company's stock by another company
Consolidation
A combination of two or more business entities into a new entity
Takeover
The assumption of control by one corporation over another through merger, acquisition, or some other type of transaction
Proxy contest
A strategy for gaining control of a company by obtaining the voting rights of the target's shareholders
Tender offer
A purchase offer made directly to the shareholders of the target, typically at an offer price greater than the current market price
Divestiture
The disposal or sale of part of a company
Spin-off
The creation of a new company from part of an existing company
Horizontal acquisition
A combination of two companies in the same line of business
Vertical acquisition
A combination of two companies involved in related lines of business but at different stages of production
Conglomerate acquisition
A combination of two companies involved in unrelated lines of business
Revenue efficiency
In the context of acquisitions, a measure of the extent to which a company's revenue can be increased by combining the company with another entity or entities
Cost efficiency
In the context of acquisitions, a measure of the extent to which a company's costs can be reduced by combining the company with another entity or entities
Due diligence
The process of examining a company's operations, finances, and management and verify material facts that affect company value.
Loan covenant
A condition that must be met to keep the loan in compliance