the act of one company purchasing another company to gain operational control

acquisition

when a buyer reviews and analyzes a seller’s internal documents relating to operations, finances, and customers

due diligence

the act of a company acquiring another company without agreeable terms or consent

hostile takeover

offer occurs when the acquirer offers to purchase the stockholder's stock at a fixed price, typically above the market

tender offer

represents the company’s leadership replacing the board of directors not in favor of the acquisition with agreeable board members

proxy fight

occurs when the acquirer buys a majority of the target’s stock on the open market

controlling interest

the combination of two organizations to form a new entity is called a

merger

the volume of a product or service becoming maximized within the market

market saturation

a company’s domination over an industry

monopoly

occurs when one company integrates with another in the same line of business or industry, typically competitors

horizontal Merger

a company acquires a supply chain partner

vertical Merger

merger between two or more companies operating in the same industry but do not offer similar products

congeneric Merger

a merger between two or more unrelated companies

conglomerate Merger

failure to meet contractual obligations

default

resource allocations that exceed revenue

financial distress