Professional Documents
Culture Documents
issues:
Chapter 13
A) Pre-bid defenses=
B) Post-bid defenses=
Form of consideration=
Often take place only when buyer and seller disagree about
the expected growth and the future performances of the
target company. Takes place over a 3-5-year period and may
involve 10% to 50% of the purchase price being deferred and
paid across during that period.
Based on the assumption that the market will assume that the
management of the larger company will be able to apply common
approach to both companies after the takeover thus improving
performance of the acquired company by using the method that they
have been using on their own company before the takeover.