M&A
Buying other companies
M&A stands for mergers and acquisitions—the consolidation of companies through various financial transactions.
A merger combines two companies into one; an acquisition is one company purchasing another.
The term appears constantly in business and finance: The firm specializes in M&A advisory, M&A activity slowed during the recession.
Investment bankers, lawyers, and consultants who work on these deals are said to work "in M&A."
Purchase of controlling interest
- divestitureDisposal of assets
- spin-offDerivative from a parent
- carve-outExempted portion or provision
- consortiumCooperative group for ventures
Combined effect exceeding components
- integrationCombining into a whole
- consolidationCombining into unified whole
- diversificationExpanding into varied areas
- expansionIncrease in scope
bolt-on · tuck-in · rollup · platform · add-on · transformational · accretive
Assessment of monetary worth
- negotiationDiscussion seeking mutual accord
- closingFinal stage of something
- signingInscribing one's name
- biddingOffering prices or obeying
auction · target · buyer · seller · advisor · pipeline · tombstone · mandate
Rearranging an existing framework
- harmonizationCreating consistency across systems
- consolidationCombining into unified whole
- retentionContinued holding or possession
- communicationExchanging ideas or information
Borrowed capital for amplified returns
- equityImpartial treatment or ownership value
- debtMoney owed another
- capitalWealth used for investment
- valuationAssessment of monetary worth
multiple · EBITDA · financing · mezzanine · securities · underwriting · accretion · dilution
Aggressively unfriendly
- friendlyShowing kindness, warmth
- unsolicitedNot asked for
- white-knightBenevolent rescuer of companies
- greenmailPremium buyback from raider
Against corporate market dominance
- approvalFavorable opinion given
- filingStoring documents systematically
- cross-borderSpanning national boundaries
- clearancePermitted passage or approval
remedy · divestiture · notification · FTC · DOJ
buyout
Purchase of controlling interest
- divestitureDisposal of assets
- spin-offDerivative from a parent
- carve-outExempted portion or provision
synergy
Combined effect exceeding components
- integrationCombining into a whole
- consolidationCombining into unified whole
- diversificationExpanding into varied areas
expansion · bolt-on · tuck-in · rollup · platform · add-on · transformational · accretive
valuation
Assessment of monetary worth
- negotiationDiscussion seeking mutual accord
- closingFinal stage of something
- signingInscribing one's name
bidding · auction · target · buyer · seller · advisor · pipeline · tombstone · mandate · exclusivity
restructuring
Rearranging an existing framework
- harmonizationCreating consistency across systems
- consolidationCombining into unified whole
- retentionContinued holding or possession
leverage
Borrowed capital for amplified returns
valuation · multiple · EBITDA · financing · mezzanine · securities · underwriting · accretion · dilution · funding
hostile
Aggressively unfriendly
- friendlyShowing kindness, warmth
- unsolicitedNot asked for
- white-knightBenevolent rescuer of companies
antitrust
Against corporate market dominance
- approvalFavorable opinion given
- filingStoring documents systematically
- cross-borderSpanning national boundaries
clearance · remedy · divestiture · notification · FTC · DOJ
- corporate financecost of capital, investment, capital markets, NPV, debt financing
- Business Consultingfinancial advice, business planning, growth strategy, market analysis, due diligence
- Investment BankingIPO, underwriting, underwriter, deal, deals
- lawlaw, lawyer, lawyers, attorney, attorneys
- legallawyer, judge, jury, trial, verdict
- corporationsApple, Microsoft, Google, Amazon, Toyota
Growth arising internally, gradually
bootstrapping · R&D · building from scratch · startup · hiring
Reversal of consolidation
antitrust enforcement · trust-busting · decentralization · atomization
merger, mergers, merge, merged, merging, acquisition, acquisitions, acquire, acquired