Takeover

Definition

• The acquisition of a company by another company. The company being acquired is typically called the "target" and the one purchasing is typically called the "acquirer" or "bidder." There are four common types of takeovers: "friendly takeovers," "hostile takeovers", "reverse takeovers," and "backflip takeovers." A friendly takeover is a purchase where both parties' management approve of the sale. A hostile takeover is a purchase where the target company's management is against the sale, but the bidder can go around them and purchase the company directly from the shareholders. A reverse takeover is when a private company purchases a publically traded company, often to bypass the IPO process. A backflip takeover is when the purchasing company becomes a subsidiary of the purchased company.

Synonyms
purchase, merger, aquisition

Related Terms and Acronyms

• Annex — Definition,
  • To add one thing onto another.
• Backflip Takeover — Definition,
  • A form of takeover where the purchasing company becomes a subsidiary of the purchased company.
• Friendly Takeover — Definition,
  • When a company purchases another and both parties' management approve.
• Hostile Takeover — Definition,
  • When a company purchases another but the target company's management does not approve.
• Reverse Takeover — Definition,
  • The purchase of a public company by a private company, often to avoid the IPO process.