FinanceAdvisor

In business, a white knight may be a corporation, a private company, or a person that intends to help another firm. There are many types of white knights. continued…

A takeover in business refers to one company (the acquirer) purchasing another (the target). Such events resemble mergers, but without the formation of a new company. continued…

A suicide pill is the term given to a substance that when taken induces death. The concept of the suicide pill does not limit itself to pills, but rather may lend itself in a colloquial manner to anything, that when deliberately taken has fatal consequences. continued…

A scorched earth policy is a military tactic which involves destroying anything that might be useful to the enemy while advancing through or withdrawing from an area. Apparently a translation of Chinese jiot (zhèngcè), the term refers to the practice of burning crops to deny the enemy food sources, continued…

A reverse takeover (RTO), also known as a back door listing, or a reverse merger, is a financial transaction that results in a privately-held company becoming a publicly-held company without going the traditional route of filing a prospectus and undertaking an initial public offering (IPO). continued…

Poison pill originally meant a literal poison pill (often a glass vial of cyanide salts) carried by various spies throughout history, and by Nazi leaders in WWII. Spies could take such pills when discovered, eliminating any possibility that they could be interrogated for the enemy’s gain. continued…

As a variation of the poison pill defense, the people pill is an anti-takeover defense under which the current management team of the target company threatens to quit en masse in the event of a successful hostile takeover. continued…

The PacMan Defense is a retaliatory anti-takeover tactic which involves the target company turning the situation on its head by counterattacking and buying the stock of the raiding company in an attempt to take control of the raider. continued…

Non-voting stock is stock that provides the shareholder very little or no vote on corporate matters, such as election of the board of directors or mergers. continued…

The phrase mergers and acquisitions or M&A refers to the aspect of corporate finance strategy and management dealing with the merging and acquiring of different companies as well as other assets. continued…