the act of one company purchasing another company to gain operational control
acquisition
when a buyer reviews and analyzes a seller’s internal documents relating to operations, finances, and customers
due diligence
the act of a company acquiring another company without agreeable terms or consent
hostile takeover
offer occurs when the acquirer offers to purchase the stockholder's stock at a fixed price, typically above the market
tender offer
represents the company’s leadership replacing the board of directors not in favor of the acquisition with agreeable board members
proxy fight
occurs when the acquirer buys a majority of the target’s stock on the open market
controlling interest
the combination of two organizations to form a new entity is called a
merger
the volume of a product or service becoming maximized within the market
market saturation
a company’s domination over an industry
monopoly
occurs when one company integrates with another in the same line of business or industry, typically competitors
horizontal Merger
a company acquires a supply chain partner
vertical Merger
merger between two or more companies operating in the same industry but do not offer similar products
congeneric Merger
a merger between two or more unrelated companies
conglomerate Merger
failure to meet contractual obligations
default
resource allocations that exceed revenue
financial distress