1.

Amalgamation
The combination of one or more companies into a new entity. An amalgamation is distinct from a merger
because neither of the combining companies survives as a legal entity. Rather, a completely new entity
is formed to house the combined assets and liabilities of both companies.

2.Buyout
The purchase of a company's shares in which the acquiring party gains controlling interest of the
targeted firm. Incorporating a buyout strategy is a common technique used to gain access to new
markets and is one of the most common methods for inorganically growing a business.

3.Merger Of Equals
The combination of two firms of about the same size to form a single company. In a merger of equals,
shareholders from both firms surrender their shares and receive securities issued by the new company.

4.Hostile Takeover
A takeover attempt that is strongly resisted by the target firm.

5.Poison Pill
A strategy used by corporations to discourage hostile takeovers. With a poison pill, the target company
attempts to make its stock less attractive to the acquirer. There are two types of poison pills:

6.Backflip Takeover
An uncommon type of takeover that occurs when the acquiring company becomes a subsidiary of the
acquired company.

7.Friendly Takeover
A situation in which a target company's management and board of directors agree to a merger or
acquisition by another company. In a friendly takeover, a public offer of stock or cash is made by the
acquiring firm, and the board of the target firm will publicly approve the buyout terms, which may yet be
subject to shareholder or regulatory approval. This stands in contrast to a hostile takeover, where the
company being acquired does not approve of the buyout and fights against the acquisition.

8.Acquisition Premium
The difference between the actual cost for acquiring a target firm versus the estimate made of its value
before the acquisition

9.Merger Deficit
An accounting term used to describe the situation when the total value of the share capital used to
purchase another company is less then the total value of the equity purchased. The merger does not
necessarily have to be an all-stock acquisition

10.Horizontal Acquisition
The acquisition of one company by another in the same industry. The new combined entity may be in a
better competitive position than the standalone companies that were combined to form it. Horizontal
acquisitions expand the capacity of the acquirer, but the basic business operations remain the same

-prepared by Babi-