MERGERS & ACQUISITIONS
Vertical Merger
Vertical Merger A vertical merger occurs when two companies in different industries merge, with one company controlling the majority of the other company’s assets or operations. Examples of Vertical Mergers: A car manufacturer merging with a tire manufacturer. A software company merging with a hardware company. A food company merging with a packaging company. Reasons […]
Novation
Definition: Innovation is the process of creating novel and valuable solutions to problems or the creation of new products, services, processes, or technologies. It involves a wide range of activities, including ideation, problem-solving, prototyping, testing, and implementation. Key Elements of Innovation: Creativity: Generating new ideas and perspectives Imagination: Visualization and creativity Inspiration: Drawing from diverse […]
Hostile Takeover
Definition: A hostile takeover is a corporate action in which a company acquires a majority of the shares of another company without the target company’s management’s consent. It is a type of acquisition in which the acquirer makes an unsolicited offer to purchase a company without the target company’s management’s approval. Process: Identify a target: […]
Horizontal Integration
Horizontal Integration Horizontal integration is a strategy in which a company expands its operations by acquiring companies in the same industry or market. This is a type of corporate restructuring in which a company grows horizontally by acquiring other companies. Process of Horizontal Integration: Identify potential targets: Company seeks companies that are complementary to its […]
Backward Integration
Backward Integration Backward integration is a numerical technique for solving ordinary differential equations (ODEs) in reverse time. It is a numerical method that approximates the solution of an ODE by iteratively marching backward in time, starting from the final time and moving toward the initial time. Process: Define the ODE: The ODE to be solved […]
Poison Pill
A poison pill is a strategy used in corporate governance to resist an unwanted takeover or acquisition. Definition: A poison pill is a provision in a company’s bylaws or articles of association that gives the company’s management the power to take certain actions, such as issuing new stock, repururchasing stock, or granting options, in response […]
Carve-Out
The phrase “carve out” can have different meanings depending on the context. Please provide me with more information about the context so I can give you the meaning of “carve out” in that particular situation.
Divestment
Definition: Divestment is the process of selling or transferring ownership of assets or businesses by a company. It is a strategic move typically undertaken to raise capital, reduce debt, or focus on core operations. Reasons for Divestment: Raising capital: Divesting assets or businesses can generate cash flow, which can be used for other investments or […]
Vertical Integration
Vertical Integration Vertical integration is a business strategy that involves a company controlling a significant portion of the supply chain for a product, usually by owning or controlling the production, distribution, and retail stages. Types of Vertical Integration: Forward integration: When a company controls the distribution and retail stages of a product’s supply chain. Backward […]
Disinvestment
Definition: Disinvestment is the process of reducing or eliminating an investment. It involves the sale of assets or the withdrawal of funds from an investment portfolio. Reasons for Disinvestment: Market conditions: Changes in market prices may necessitate disinvestment to realize gains or reduce losses. Investment goals: Reaching investment goals may require disinvestment to access funds […]
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