IB1 Chapter 21 Takeovers

diversify

to become more varied or different e.g. by selling different products

retail outlets

places where goods are sold shops, stores, kiosks, markets, etc

controlling interests

a sufficient number of stock in a company to be able to decide what to do at an annual general meeting

listed companies

public companies whose stocks are traded on a stock exchange

fees

amounts of money paid for services

conglomerates

companies that own or control several smaller businesses selling very different products or services

synergy

the combined power or value of a group of things working together which is greater than the total power or value achieved when each is working separately

market capitalization

the total value of a company on the stock exchange the price of all its stocks

subsidiaries

companies that are owned by a larger parent company

pension fund

a sum of money reserved to pay a company's retired employees

mergers

occurs when two companies mutually agree to unite into a new single company

buyouts

refers to when one company buys another company or a huge part to have majority control of interest

takeovers

occurs when one company makes a successful bid and takes control of the company by purchasing the majority of the shares

management buyouts (mbo)

occurs when managers who operate the business purchase the company and run it independently

leveraged buyouts (lbo)

occur when investors buy the companies as they see the potential return or growth of the business

friendly takeovers

refers to a type of takeover in which acquirers and the targeted companies agree on the negotiated terms with the bod

hostile takeovers

refers to a type of takeover in which acquirers go to the shareholders to purchase the shares of the company to gain complete control

reverse takeovers

refers to a type of takeover when a private company takes over a public one it provides a way for a private company to go public with less expense and risks

backflip takeovers

refers to a type of takeover when a company takes over targeted companies and becomes part of the acquired company's brand rare case