TAKEOVERS_ ANH KINH TE

Horizontal integration

buying competitors in the same field or activity

=> gives a company a larger market share and reduce competition.

Vertical integration

buying companies in other parts of the supply chain

=> to achieve cost saving

Backward integration

buying suppliers of raw materials or component

Forward integration

buying distributors or retailers

A raid

buying a company’s stocks on the stock market

A takeover bid

making an offer to a company’s stockholders to buy their stocks

A friendly bid

when the directors of a company agree to a takeover

A hostile bid

when the directors don’t agree to a takeover

A leveraged buyout (LBO)

is the acquisition of another company using a significant amount of borrowed money to meet the cost of acquisition.

Asset stripping

is when a company or investor buys a company with the goal of selling off its assets to make a profit.

Recapitalization

the process where asset-stripped companies take on new debt often through the use of leveraged loans.

Controlling interest

a sufficient number of stocks in a company to be able to decide what to do (at an Annual General meeting)

Listed company

public companies whose stocks are traded on a stock exchange

Conglomerates

company that own or control several smaller bz selling 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 stock)

Subsidiary

companies that are owned by a larger parents company

pension funds

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