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Mergers and Acquisitions Key Concepts

Key Concepts

Key Concepts provide you with definitions of buzzwords appearing in the media to ensure that you are up to speed with the current finance conversation. Produced in snapshot, glossary form, Key Concepts direct you to additional material to increase your knowledge and satisfy your interest.

  • Acquisitions
    Acquisition refers to the process of buying something. In commercial language, an acquisition means either the process of acquiring a business or shares in a company. By buying the whole of the shares in a company, a buyer will become the owner of the company including its business. By acquiring only 51% of the shares in a company, the buyer will become the major shareholder of a company with the capability of making important decisions as to...
  • Buyout
    Buyout usually refers to the acquisition of the total shares in a company or a controlling interest, such as 51% of the shares in a company. The buyer will then become the owner of that company and its business.In certain cases, the management of a company will buy the business of that company. This is also known as a management buyout. The management will already be familiar with the business and be in a good position to buy. Finding the...
  • Due Diligence
    Due diligence is the process of investigation of a company or business to be acquired. A buyer will want to investigate in detail any business he or she may be interested in buying. A confidentiality agreement will be signed between the buyer and the seller and their advisers after which the seller will give the buyer access to its private contracts and information.The process includes legal due diligence, which is undertaken by the buyer’s...
  • Mergers
    A merger is the process by which two companies unite their businesses, often in order to perform at multinational level. There are many different reasons why companies would want to merge their businesses, such as to extend their market or their range of products. In certain cases a customer or supplier would like to join forces and provide both the product and the supply in the same business. More commonly, the idea of merger will be used by...

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