12/17/2022 0 Comments Takeover definition![]() ![]() The purchasing firm may feel the target is undervalued, or they may wish to get access to the target’s industry position and existing brand awareness. The Pac-Man defense, the crown-jewel defense, and the golden parachute are some of the most creatively named techniques.Ī hostile corporate takeover might use a variety of methods, but they all have one thing in common: the target company’s management does not agree with the deal. A target firm might also use a number of methods to protect itself against the acquisition. A hostile takeover is often approved through either a tender offer or a proxy fight. In a hostile takeover, the acquirer goes straight to the company’s shareholders or tries to replace management in order to obtain approval for the acquisition. ![]() The firm being purchased in a hostile takeover is referred to as the target company, while the corporation carrying out the acquisition is referred to as the acquirer. The expression hostile takeover is related to the takeover of one corporation by another against the former’s desires. Oftentimes they are not agreed upon, by the management in both companies. Mergers and acquisitions aren’t always equally advantageous for both parties. A hostile takeover occurs when one firm purchases a target company without the agreement of the target’s management.
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