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EntityQ1416898· pop 25· linked from 1,220 articles

Also known as acquisition, buyout, buy-out, corporate buyout, corporate acquisition, acquisition of corporation, corporate takeover, business acquisition

In business, a takeover is the purchase of one company (the target) by another (the acquirer or bidder). In the UK, the term refers to the acquisition of a public company whose shares are publicly listed, in contrast to the acquisition of a private company.

~18 min read

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21 sections
Contents
  • Takeover types
  • Friendly takeover
  • Hostile takeover
  • Reverse takeover
  • Backflip takeover
  • Takeover financing
  • Funding
  • Loan note alternatives
  • Takeover deals
  • All-share deals
  • All-cash deals
  • Mechanics
  • In the United Kingdom
  • Strategies
  • Executive compensation
  • Debt for equity
  • Golden share
  • Tactics against hostile takeover
  • Further reading
  • References
  • Works cited

In business, a takeover is the purchase of one company (the target) by another (the acquirer or bidder). In the UK, the term refers to the acquisition of a public company whose shares are publicly listed, in contrast to the acquisition of a private company.

Management of the target company may or may not agree with a proposed takeover, and this has resulted in the following takeover classifications: friendly, hostile, reverse or back-flip. Financing a takeover often involves loans or bond issues which may include junk bonds as well as a simple cash offer. It can also include shares in the new company.

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